$AAVAS

Aavas Financiers declined over 3 percent in early trading on Monday National Housing Bank (NHB) has flagged loans worth approximately ₹400-500 crore for potential misclassification. The stock fell 3.37 percent to ₹1,422.30 after the report stated that NHB's ongoing supervisory review had raised concerns over certain loans that allegedly received concessional refinancing rates. According to sources, the regulator suspects that some loans may have been classified in a manner that enabled the company to access lower-cost funding from NHB. Senior executives from Aavas Financiers were reportedly summoned to NHB's New Delhi office last week to discuss the issue. Sources further indicated that if NHB remains unsatisfied with the company's explanations, it could consider recalling the refinancing provided against the loans under review. Such measures are relatively rare and are generally associated with serious regulatory concerns, including potential governance issues, misuse of funds, or suspected fraud. The inspection forms part of NHB's routine audit and supervision process for housing finance companies. Aavas Financiers noted that the ongoing inspection has not yet been completed, and the review remains underway.