(NFL) Navi Finserv Bonds

Navi Finserv Overview

Navi Finserv is a technology-led NBFC focused primarily on digital consumer lending. It offers personal loans, home loans and loans against property through the Navi app and other digital channels.

Personal loans remain its largest business segment. They accounted for approximately 91% of the company's AUM as of 31 March 2026, with the remaining 9% comprising home loans. By June 2026, personal loans accounted for approximately 93% of AUM, with home loans and loans against property making up the balance.

The company's digital lending model covers customer acquisition, underwriting, loan disbursement and collections. Its underwriting process uses digital data and automated risk assessment models, while its collections framework combines digital communication with on-ground teams.

Navi Finserv is a subsidiary of Navi Limited. Sachin Bansal, the group's promoter and Non-Executive Chairman of Navi Finserv, held approximately 98% of Navi Limited as of June 2026. Navi Limited held 93.4% of Navi Finserv on a fully diluted basis.

Business and operating highlights

• Business model: Non-deposit-taking, systemically important NBFC registered with the RBI.
• Products: Digital personal loans, home loans and loans against property.
• Portfolio mix: Personal loans accounted for approximately 91% of AUM in March 2026 and 93% in June 2026.
• Scale: Total managed assets of ₹22,685 Cr as of March 2026, increasing to ₹27,347 Cr by June 2026, according to CRISIL.
• Profitability: Standalone FY26 PAT of ₹292 Cr, compared with ₹222 Cr in FY25.
• Asset quality: GNPA and NNPA improved to 1.3% and 0.2%, respectively, in March 2026.
• Funding: External outstanding borrowings of ₹13,802 Cr as of 31 August 2026, with funding sourced through NCDs, term loans, commercial paper, securitisation and other facilities.
• Credit ratings: CRISIL A+/Stable, CARE A+/Stable and IND A/Stable for long-term debt instruments.

Important AUM distinction: Navi Finserv's FY26 annual report reports on-book AUM of ₹13,138 Cr, defined as the aggregate principal outstanding held in its books. CRISIL separately reports total managed assets of ₹22,685 Cr, including off-book assets. These are different measures and should not be used interchangeably.

History of Navi Finserv

Navi Finserv was incorporated on 14 February 2012 as Chaitanya Rural Intermediation Development Services (CRIDS). It received its RBI certificate of registration in March 2016.

In 2019, Sachin Bansal acquired the company, and in 2020, Navi Limited acquired Navi Finserv and its subsidiary. The lending business subsequently expanded under the Navi brand.

The company launched its digital personal loan product in 2020 and introduced digital home loans in 2021. It later expanded its funding options through public NCD issues, private placements, securitisation and partnerships with banks and financial institutions.

During FY26, Navi Finserv focused on rebuilding and scaling its lending business following the resumption of operations in December 2024. It strengthened underwriting and collections, raised ₹500 Cr in capital during the financial year and expanded its managed assets.

The company continued to grow in Q1 FY27. CRISIL reported total managed assets of ₹27,347 Cr as of June 2026, compared with ₹22,685 Cr in March 2026

Navi Finserv Board of Directors and Key Management

Navi Finserv's disclosed board comprises the following directors:

Ankit Agarwal ceased to be Managing Director with effect from 14 May 2025 and continues as a Non-Executive Director. The current company disclosures identify Abhishek Dwivedi as MD and CEO and Mahima Gautam as CFO.

Navi Finserv Shareholding Pattern

Navi Finserv is a subsidiary of Navi Limited. As of 30 June 2026, Navi Limited held 93.4% of Navi Finserv on a fully diluted basis.

Sachin Bansal held approximately 98% of Navi Limited as of 30 June 2026. Therefore, his ownership exposure to Navi Finserv is primarily through the parent company.

The 93.4% figure is the fully diluted shareholding disclosed by CRISIL. It should not be described as 100% ownership merely because some earlier rating rationales refer to Navi Finserv as a wholly owned subsidiary.

Navi Finserv Financials

Standalone financial performance

Navi Finserv's standalone financial performance recovered in FY26 after a decline in profitability in FY25. PAT increased to ₹292 Cr in FY26 from ₹222 Cr in FY25, while total income increased to ₹2,476 Cr.

Source: CRISIL's July 2026 rating rationale. Total managed assets include off-book assets. Total income and PAT include treasury gains. FY24 profitability was supported by a one-off gain associated with the sale of the microfinance business, Chaitanya India Fin Credit Private Limited. The FY26 net worth and CRAR figures are rounded.

On-book AUM and total managed assets

The company's FY26 annual report reported on-book AUM of ₹13,138 Cr as of 31 March 2026. This represents the aggregate principal outstanding held in Navi Finserv's books.

CRISIL reported total managed assets of ₹22,685 Cr for the same date, including off-book assets. Its July 2026 rationale also cited AUM of ₹19,740 Cr, using the rating agency's reporting measure. These figures should be presented with their respective definitions rather than treated as identical.

By 30 June 2026, CRISIL reported total managed assets of ₹27,347 Cr and AUM of ₹23,440 Cr. The expansion reflects continued growth in the company's lending portfolio.

Capitalisation and leverage

Navi Finserv reported net worth of approximately ₹3,834 Cr and CRAR of 23.8% as of March 2026. Its gearing ratio, including debt from Navi, stood at 3.0x.

The company received ₹500 Cr in capital during FY26, supporting its capital position as the lending portfolio expanded. CRISIL expects gearing to remain below 4x on a steady-state basis over the medium term.

By June 2026, CRISIL reported gearing of 3.2x. The capital adequacy ratio remained at 23.8% as of March 2026 in the rating rationale.

Asset quality

Navi Finserv's asset quality improved during FY26. GNPA declined from 2.5% in March 2025 to 1.3% in March 2026, while NNPA decreased from 0.4% to 0.2%.

The adjusted 90+ days past due (dpd), including trailing 12-month write-offs, improved to 3.9% in March 2026 from 6.9% in March 2025.

The improvement continued into Q1 FY27. As of 30 June 2026, CRISIL reported GNPA of 1.38%, NNPA of 0.2% and adjusted 90+ dpd of 3.2%.

The adjusted 90+ dpd metric includes trailing 12-month write-offs and is not directly equivalent to GNPA or NNPA.

Funding profile

Navi Finserv has diversified its borrowing sources across NCDs, bank term loans, commercial paper, pass-through certificates, subordinated debt and working capital facilities.

As of 31 August 2026, external outstanding borrowings stood at ₹13,802 Cr. Their composition was:

During Q1 FY27, the company raised approximately ₹3,020 Cr at an average borrowing cost of around 10.4%.

Its lender base has expanded to include banks and other financial institutions. The funding mix reduces dependence on any single source, although the company's borrowing costs and access to capital markets remain important credit considerations.

Latest operating update: Q1 FY27

CRISIL's October 2026 rating rationale reported that Navi Finserv's standalone PAT reached ₹199 Cr in the quarter ended June 2026, compared with ₹135 Cr in the preceding quarter. Return on managed assets increased to 3.2% from 2.5% in the previous quarter.

The improvement was supported by revised loan pricing, stronger operating leverage and lower credit costs. Credit costs were reported at 2.2% for the June 2026 quarter, compared with 4.2% in FY25.

The company also reported improved adjusted 90+ dpd of 3.2% as of June 2026. However, the continued expansion of its predominantly unsecured lending portfolio makes the sustainability of asset quality a key monitorable.

Navi Finserv Key strengths

1. Comfortable Capitalisation - As on March 31, 2026, Navi’s net worth is ~ INR 3,832 Crs with comfortable leverage of 2.99x, with a CRAR of 23.76% (well above the RBI's 15% minimum requirement)
2. Strong Promoter and Management Team - Navi is promoted by Sachin Bansal (Flipkart co-founder) who is supported by a management team with 100+ years of cumulative industry experience
3. Strong Lender Profile - Navi has 30+ lenders which includes Goldman Sachs, SBI, HDFC Bank, ICICI Bank, Kotak Bank and others

Navi Finserv Key risks

1. Recent Growth - Navi’s loan portfolio is largely new, and its performance through various business cycles is not yet proven
2. Regulatory Risk - Navi operates in the digital lending segment which expose it to regulatory risk, given the evolving nature of regulations governing this space

Navi Finserv received an upgrade from CRISIL in October 2026. Its long-term rating was raised from CRISIL A/Stable to CRISIL A+/Stable, while its short-term rating was upgraded from CRISIL A1 to CRISIL A1+.

The company's current rating profile, as reflected in its investor relations disclosures, is:

Latest CRISIL rating action

On 15 October 2026, CRISIL upgraded Navi Finserv's long-term bank facility rating to A+/Stable from A/Stable and its short-term rating to A1+ from A1. It also upgraded the ratings on existing NCDs and assigned A+/Stable to an additional ₹500 Cr NCD programme.

The upgrade followed strong growth in AUM, improvement in asset quality and profitability, healthy capitalisation and a diversified funding profile.

CRISIL also highlighted the company's predominantly unsecured loan portfolio as a key risk. A sustained increase in gearing beyond 3.5–4x, deterioration in asset quality or weaker profitability could put pressure on the rating.

India Ratings affirmed the company's NCDs at IND A/Stable and commercial paper at IND A1 on 3 August 2026. The company's current investor relations rating page also lists CARE A+/Stable for NCDs and long-term bank facilities, and CARE A1+ for commercial paper.

Rated amounts represent the instruments or facilities covered by the agencies' ratings. They should not be interpreted as the amount of debt issued or outstanding. A credit rating is an assessment of credit risk, not a guarantee of timely repayment.