Raama Finance has appointed veteran financial leader Jitendar Prasad as CEO and approved the issuance of INR 5 crore in secured non-convertible debentures. Prasad brings over 24 years of experience from firms like ICICI Bank and L&T Finance. The NCDs carry a 20% coupon rate with an 18-month tenure, reflecting the company’s push to raise fresh capital to drive its retail finance strategy.
Raama Finance Names New CEO and Secures Debt Funding
Jitendar Prasad appointed as CEO; Company approves INR 5 crore NCD issuance.
Reader Takeaway: New leadership signals growth focus, while a 20% interest rate highlights the company's cost of capital.
What just happened
Raama Finance Limited has announced a major leadership transition and a capital-raising initiative. The company’s board has appointed Jitendar Prasad as Chief Executive Officer and Key Managerial Personnel, effective September 22, 2026. Simultaneously, the board sanctioned the issuance of INR 5 crore worth of secured, non-convertible debentures (NCDs).
Why this matters
The appointment of Prasad, a veteran with 24 years of experience across major institutions like Barclays, PNB Housing Finance, and CSB Bank, suggests a strategic shift toward strengthening Raama Finance’s presence in mortgage and retail lending. The new debt issuance, while providing necessary liquidity, comes at a high interest cost of 20% per annum, which will impact the company’s interest coverage and profitability in the coming quarters.
Debt Issuance Details
The Series A NCD issuance is secured by a 125% charge over the company’s receivables, with Catalyst Trusteeship Limited acting as the trustee. The debentures have a tenure of 18 months and a face value of INR 10,000 per unit. This issuance is a portion of a broader board-approved corpus of INR 100 crore.
What to track next
Investors should monitor the efficiency with which the new management deploys these funds into high-yield lending segments and whether the high cost of this debt is justified by future earnings growth.