Sachin Bansal, a serial tech entrepreneur and CEO of fintech firm Navi Finserv Pvt Ltd, said his company would consider whether they wanted to appeal against the denial of public banking license by the Reserve Bank of India (RBI) to its microfinance company Chaitanya India. Fin Credit Pvt. Ltd., NBFC which serves rural areas of the country.
The RBI said in a statement on Tuesday that the central bank had received 11 applications for licensing of public sector banks and small financial banks, six of which were rejected. This included the application of Chaitanya India Fin Credit led by Bhansal.
“We have received news that the RBI has denied us a universal banking license. We will analyze the reasons behind this and consider our options. We could also consider appealing against the RBI’s decision, “Bansal said in a statement.
Meanwhile, Navi Finserv, a wholly owned subsidiary of Navi Technologies Finserv Limited (Navi) in Bansal, today announced a public issue of Rs 600 crore through secured, rated, listed and redeemable non-convertible debentures (NCDs) with a base issue. Option to retain additional subscriptions of Rs 300 crore and another Rs 300 crore. The issue will open on Monday, May 23, 2022, and is scheduled to close on Friday, June 10, 2022, with the option of early closure or extension.
Navi Finserv offers personal loans and home loans under the “Navi” brand and claims to provide loans over 84% of all Indian zip codes. The company had a total value of Rs.