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RBI bans DMI Finance, Navi Finserv among 4 NBFCs from lending over regulatory violations

YourStoryYourStory · 9m ago
RBI bans DMI Finance, Navi Finserv among 4 NBFCs from lending over regulatory violations
Medial

The Reserve Bank of India (RBI) has ordered several Non-Banking Financial Companies (NBFCs), including DMI Finance and Navi Finserv, to stop lending due to concerns over their pricing policies. Arohan Financial Services Limited and Asirvad Micro Finance Limited have also been instructed to cease lending. The RBI found that these companies were charging excessive interest rates and failing to adhere to regulatory guidelines. The companies have also violated the Fair Practices Code, including issues with income assessment, loan repayment capacity, and asset classification. The RBI aims to ensure responsible use of regulatory freedoms and fair pricing among its regulated entities.

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RBI lifts loan sanction ban on Sachin Bansal-led Navi Finserv

EntrackrEntrackr · 7m ago
RBI lifts loan sanction ban on Sachin Bansal-led Navi Finserv
Medial

The Reserve Bank of India (RBI) has lifted the restrictions previously placed on Navi Finserv, enabling the non-banking financial company (NBFC) to resume loan sanctions and disbursals. The restrictions were imposed due to concerns over regulatory compliance and pricing policies. The RBI’s decision indicates that Navi Finserv has addressed these issues promptly. In October, the RBI had directed Navi Finserv and three other NBFCs to cease loan approvals, citing deficiencies in adherence to regulatory guidelines. “..Satisfied with these measures and the company’s commitment to ongoing regulatory compliance, the RBI has now lifted the restrictions with immediate effect. This decision highlights the importance of adherence to regulatory standards in the financial sector,” said RBI in a statement. The other three NBFCs affected by the RBI’s directive were DMI Finance, Asirvad Micro Finance and Arohan Financial Services. However, the apex banking body has yet to allow the three NBFCs to disburse loans. Founded in 2018 by Bansal and Ankit Agarwal, Navi Finserv operates as an RBI-registered NBFC in the middle layer category, offering personal and home loans. Recently, Navi closed a $24.5 million loan securitization transaction with Goldman Sachs (India) Finance Private Limited. The company’s revenue from operations rose to Rs 1,906 crore in FY24 from Rs 1,238 crore in FY23, as per its standalone financial statements. The company’s net profits stood at Rs 668 crore, largely driven by gains from the sale of its subsidiary. Notably, the company has emerged as one of the fastest growing players in the UPI ecosystem. In October, it surpassed CRED to become the fourth-largest player in UPI by volume.

Sachin Bansal quits as CEO of Navi; new chiefs appointed for Navi Tech and Finserv

EntrackrEntrackr · 5m ago
Sachin Bansal quits as CEO of Navi; new chiefs appointed for Navi Tech and Finserv
Medial

Sachin Bansal quits as CEO of Navi; new chiefs appointed for Navi Tech and Finserv The move follows RBI's recent lifting of restrictions on Navi Finserv, allowing it to resume lending. In October, the RBI had directed Navi Finserv and three other NBFCs to cease loan approvals, citing deficiencies in adherence to regulatory guidelines. Navi has announced the appointment of Rajiv Naresh as the new CEO of Navi Technologies Limited and Abhishek Dwivedi as the new CEO of Navi Finserv Limited. Sachin Bansal, the existing CEO of both companies, will transition to the role of Executive Chairman of the Navi Group while continuing to oversee the group's strategic direction. Both Rajiv Naresh and Abhishek Dwivedi have been part of Navi's early founding team and have held various leadership roles within the organization over the past six years. "This restructuring is a strategic milestone that enables us to sharpen our focus on long-term growth. Both Rajiv and Abhishek have played key roles in our growth, and I am confident that we will continue on this upward trajectory as they assume their new roles," said Bansal. According to the press release, Bansal will focus on Navi’s long-term strategy, expansion, fundraising, mergers and acquisitions, and improving compliance and risk management. He will also support Navi’s tech growth through innovation in technology and data science while guiding Rajiv and Abhishek in managing their businesses. After the changes, Abhishek will lead lending businesses, while Rajiv will handle non-lending businesses at Navi Group. Navi’s revenue from operations rose to Rs 1,906 crore in FY24 from Rs 1,238 crore in FY23, as per its standalone financial statements. The company’s net profits stood at Rs 668 crore, largely driven by gains from the sale of its subsidiary.

DMI Finance expands ESOP pool to $105 Mn

EntrackrEntrackr · 2m ago
DMI Finance expands ESOP pool to $105 Mn
Medial

Digital lending company DMI Finance has expanded its existing ESOP plan, DMI ESOP Plan 2018- Extended, by granting additional employee stock options to its employees. The board at DMI Finance has passed a special resolution to add 1,18,29,695 employee stock options to its existing plan, bringing the total ESOP pool to 3,44,29,695 options, its regulatory filing accessed through the Registrar of Companies (RoC) shows. As per Entrackr’s estimates, the newly added ESOPs are worth around Rs 306.6 crore or $36 million, while the value of the total ESOP pool stood at Rs 892 crore or $105 million. Notably, these valuations are based on the company's last funding round, where it raised $400 million through a mix of primary and secondary transactions, led by Japan’s MUFG Bank. In addition to ESOP pool expansion, DMI Finance also appointed Arjun Malhotra and Tammir Amr as Independent Directors of the company. Founded in 2008 by Shivashish Chatterjee and Yuvraja C Singh, DMI Finance is a digital lender offering consumption, personal, and MSME loans. It partners with leading platforms like Samsung, Google Pay, and Airtel to deliver embedded financial products to customers across India. In October 2024, the RBI barred four NBFCs, including DMI Finance, from sanctioning and disbursing loans due to non-compliance with pricing regulations, citing excessive lending rates and interest spreads. The restriction was lifted in January 2025. While it is yet to disclose its FY25 numbers, DMI Finance reported over 60% year-on-year growth in operating revenue to Rs 2,654 crore in FY24 as compared to FY23, along with a profit of Rs 397 crore during the same period.

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