Large Capital Base, Deployment Likely Across Various Segments

NFL, which is also a holding company of the Navi Groups non banking financial company microfinance institution NBFC-MFI, Chaitanya India Fin Credit Limited, is a lending subsidiary of NTL. NTL was set up to invest in and provide technological platforms to the financial companies of the group. The company was set up by the founder and ex-promoter of Flipkart, Sachin Bansal, who infused INR 40 billion into various financial ventures of the group in FY20. Apart from the lending business, the group also owns a general insurance company, Navi General Insurance, which was acquired from Dewan Housing Finance Limited in FY20.

Eminent Board and Advisor

With the company expanding its operations, it has set up an experienced board with Anand Sinha former deputy governor of the RBI as the independent director at NTL. It has also enlisted the services of the veteran banker, Paresh Suthankar, as advisor to the board for lending, banking and other businesses. NFL has appointed Riya Bhattacharya as the new chief executive officer, who has experience in investing and building companies. Moreover, the company has appointed a new Chief Financial Officer Divyesh Jain who has 11 years of experience in the finance domain. NFL also has a lending head and two product heads, individually looking at housing loan and digital loan segments.

Reserve Equity to Support Business Requirements

Of the INR 40 billion corpus, NTL had infused INR 18 billion, with 64 percent of it mainly infused in the lending businesses, as of December 2021, with the balance being available for equity infusion, further expansion in related verticals, and contingent support to group companies, as and when required. This surplus has mostly been lent to NFL through interest free debentures, and subsequently invested largely in capital markets. The track record of the promoters provides the group with substantial experience in fundraising.