Shares of Aavas Financiers Ltd plunged more than 8% in early Monday trading, hitting a low of Rs 1,351, following news reports alleging discrepancies in some of the company's loan classifications. The stock later partially recovered, trading 3.25% lower at Rs 1,424.45, but remains down 34.55% year-to-date.
In response to the reports, Aavas Financiers issued a clarification, stating it had noted news referring to "alleged discrepancies in certain loan classifications, purported reversal of refinancing facilities by the National Housing Bank (NHB), and management changes at the Company linked to such purported reversal of refinancing." The company firmly refuted these assertions, calling the reports "misleading, malicious, speculative and not an accurate characterisation of the Company’s engagement with NHB."
Company Denies Regulatory Misconduct
Aavas Financiers emphasized that its engagement with the National Housing Bank is part of routine regulatory oversight. "NHB, in the ordinary course of its regulatory and refinancing oversight, conducts periodic audits, reviews and supervisory engagements with housing finance companies, including Aavas and one such inspection is ongoing and has not concluded," the company stated. It clarified that such engagements are a normal aspect of the regulatory framework and do not, by themselves, signify an adverse regulatory finding, penal action, or a directive to reverse or repay refinancing facilities.
The company also affirmed its commitment to regulatory disclosures, adding, "If any development arises that requires disclosure under applicable law… the Company will make the requisite disclosure at the appropriate stage. Based on the facts presently available to the Company, no such disclosure is necessitated at this stage."
Executive Resignations Announced
Separately, Aavas Financiers confirmed that its Board of Directors accepted the resignations of two key executives: Ghanshyam Rawat, President and Chief Financial Officer (CFO), and Ashutosh Atre, President and Chief Risk Officer (CRO). Their resignations are effective from September 21, 2026.
The Board also approved the immediate appointment of interim replacements. Ghanshyam Gupta has been named interim CFO, and Punit Purushottam Agarwal has been appointed interim Chief Risk Officer, both effective June 22, 2026.