Aavas Financiers (NSE:AAVAS, BOM:541988) strongly denied media reports alleging irregularities in loan classification and potential action by the National Housing Bank (NHB), according to a stock exchange filing on Monday.
The company said reports suggesting certain loans were misclassified to obtain concessional refinancing from NHB, "are misleading, malicious, speculative and not an accurate characterisation of the Company's engagement with NHB". The company also dismissed claims that NHB could recall refinancing facilities linked to those loans.
Aavas also rejected reports linking management changes to any purported withdrawal or reversal of NHB refinancing facilities.
The clarification follows media reports that NHB was reviewing loans worth 4 billion rupees to 5 billion rupees that had received refinancing at concessional rates.
Shares of Aavas were down nearly 1% in recent trade.