Sachin Bansal Resigns as Navi CEO Amid Leadership Reshuffle and Regulatory Challenges

Sachin Bansal resigns as CEO of Navi Technologies and Navi Finserv but will continue as Executive Chairman. Rajiv Naresh and Abhishek Dwivedi, both founding team members, have been appointed as the new CEOs. The leadership change comes as Navi navigates regulatory challenges, financial hurdles, and expansion plans.

CONTENTS:

• Sachin Bansal Resigns: Navi Technologies & Finserv Undergo Leadership Reshuffle
• Sachin Bansal Resigns as Navi CEO

Sachin Bansal Resigns as Navi CEO Amid Leadership Reshuffle and Regulatory Challenges

Sachin Bansal Resigns: Navi Technologies & Finserv Undergo Leadership Reshuffle

Sachin Bansal has stepped down as the CEO of both Navi Finserv Limited (NFL) and Navi Technologies Limited (NTL) as part of a strategic restructuring. However, he will continue to oversee the Navi Group as Executive Chairman.

In his place, Rajiv Naresh has been appointed as CEO of Navi Technologies, while Abhishek Dwivedi takes over as CEO of Navi Finserv. Both have been with the company since its inception in 2018.

Bansal’s Statement on the Leadership Transition

Announcing his resignation, Bansal stated,
“This restructuring is a strategic milestone that enables us to sharpen our focus on long-term growth. Both Rajiv and Abhishek have played key roles in our growth, and I am confident they will continue driving Navi forward in their new leadership roles.”

Sachin Bansal, who co-founded Flipkart before its acquisition by Walmart in 2018, launched Navi Finserv in the same year to focus on financial services and lending.

RBI’s Supervisory Sanctions on Navi Finserv

In October 2024, the Reserve Bank of India (RBI) imposed restrictions on Navi Finserv due to non-compliance with regulatory guidelines, temporarily halting its lending operations from October 21, 2024.

However, after 40 days of corrective measures, the RBI lifted the ban on December 2, 2024, stating that Navi Finserv had successfully revamped its processes and systems and demonstrated a commitment to ongoing regulatory compliance.

In an official statement, the RBI noted:
“After multiple rounds of interaction and review, we are satisfied with Navi Finserv’s corrective measures, ensuring fairness in loan pricing and adherence to regulatory guidelines. Therefore, we have decided to lift the imposed restrictions immediately.”

With the new leadership in place, Navi aims to strengthen its compliance framework and refocus on sustainable growth in the financial services sector

Navi Group, founded by Sachin Bansal, announced on Friday the appointment of Rajiv Naresh as the CEO of Navi Technologies Ltd and Abhishek Dwivedi as the CEO of Navi Finserv. Sachin Bansal, who previously held both CEO roles, will continue to serve as the Executive Chairman of the group.

According to a company statement, both Rajiv and Abhishek have been part of Navi’s founding team and have held key leadership positions within the organization for the past six years.

Navi Finserv was previously under regulatory restrictions by the Reserve Bank of India (RBI), which were lifted in December after compliance improvements.

Sachin Bansal Resigns as Navi CEO

Sachin Bansal has stepped down as the CEO of Navi Technologies and its subsidiary, Navi Finserv. This marks the second time he has relinquished leadership of a company he founded, having previously resigned from Flipkart in 2018 following its acquisition by Walmart.

While his exit from Flipkart was influenced by Walmart’s preference for co-founder Binny Bansal to continue leading the company, his departure from Navi appears to be a strategic decision.

Bansal will remain with the company as Executive Chairman and continues to hold over 95% of Navi’s equity.

New Leadership at Navi

Navi has appointed:

• Rajiv Naresh as the CEO of Navi Technologies Ltd (NTL)
• Abhishek Dwivedi as the CEO of Navi Finserv Ltd (NFL)

Both have been part of the founding team and have held key leadership roles within the company.

Challenges Facing Navi

Bansal’s resignation comes at a time when Navi faces multiple hurdles:

• Regulatory Scrutiny: The Reserve Bank of India (RBI) had imposed restrictions on Navi Finserv due to concerns over high interest rates, temporarily halting its lending operations. The ban was lifted within 45 days after corrective measures.
• Financial Struggles: The company has been dealing with non-performing assets (NPAs), affecting its financial stability.
• Banking License Rejection: A few years ago, Navi’s application for a universal banking license was rejected by the RBI, hindering its expansion plans.
• Funding Needs: Navi is actively seeking new funding to sustain and accelerate its growth.