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Home / Companies / News /  India Ratings gives 'A' rtg to Sachin Bansal's Navi Group owned Chaitanya India

India Ratings gives 'A' rtg to Sachin Bansal's Navi Group owned Chaitanya India

Chaitanya India, microfinance arm of Sachin Bansal owned Navi Group, has reduced its own cost of financing in the last few quarters which has further enabled it to reduce lending rates for its borrower (Mint)Premium
Chaitanya India, microfinance arm of Sachin Bansal owned Navi Group, has reduced its own cost of financing in the last few quarters which has further enabled it to reduce lending rates for its borrower (Mint)

  • Since being acquired by the Navi Group, Chaitanya has expanded its areas of operations to eight states at present, compared to predominantly three states two years ago

MUMBAI: India Ratings, a Fitch Group entity, has assigned a credit rating of IND A (Stable) / IND A1 to the borrowing programme of Chaitanya India Fin Credit Private Limited (CIFCPL). Since Sachin Bansal’s Navi Group acquired Chaitanya in October 2019, the company’s credit rating has improved by 4 notches from BBB(minus).

Since being acquired by the Navi Group, Chaitanya has expanded its areas of operations to eight states at present, compared to predominantly three states two years ago, a press release issued by Navi said.

As a result of growing scale of operations, operational efficiency and strong liquidity profile, the company has reduced its own cost of financing in the last few quarters which has further enabled it to reduce lending rates for its borrowers. Chaitanya’s borrowing rates have dropped by almost 350-400 bps – reflective of the strong comfort lenders draw from the company’s credit profile and risk management practices, the release added.

The credit rating agency India Ratings & Research Limited noted in its report “After Sachin Bansal acquired the lending business in FY20, CIFCPL’s funding profile has improved considerably. CIFCPL’s lender base now comprises 25 lenders, which includes banks, non-banking finance companies and development financial institutions."

Anand Rao, Joint MD, CIFCPL said, “We are delighted that India Ratings has assigned us a credit rating of IND A (Stable) / IND A1. This is a strong endorsement of our financial health, best-in-class risk management practices and our business model. It will inspire each of us at Chaitanya to work even harder towards our vision of meeting the full spectrum of financial service needs for the low and middle-income rural Indians."

Navi was founded by Sachin Bansal (co-founder and ex-Chairman of Flipkart) and Ankit Agarwal (ex-banker with Deutsche Bank and Bank of America) Navi currently offers personal and housing loans through its Reserve Bank of India- registered NBFC Navi Finserv, micro-loans to rural women through its micro-finance arm, Chaitanya India, health insurance and mutual fund products (through its IRDAI and SEBI regulated group companies) such as Navi AMC acquired from the Essel Group.

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