SRG Housing Finance Addresses Allegations and NHB Audit

Management denied Rs 400 crore fund diversion allegations.
Capital Adequacy Ratio reported at 39.21%.

Reader Takeaway: Strong capital position supports stability, but regulatory audit and slower disbursements remain near-term overhangs.

What just happened

SRG Housing Finance Ltd held an investor call to respond to a media report published on September 10, 2026, alleging diversion of Rs 400 crore to promoter-related entities.

Managing Director Vinod Kumar Jain rejected the allegations, stating they were entirely false. Management said the amount cited would represent nearly one-third of the company's loan book and described such diversion as practically impossible.

Why this matters

The company also clarified its regulatory position with the National Housing Bank (NHB).

According to management, the current red-flag status is part of an ongoing supervisory audit that began in July and should not be interpreted as a declaration of fraud. Management said it expects the audit to conclude and the red-flag status to be removed after completion of the review.

Financial position

Management highlighted several operating metrics during the investor interaction.

The company reported a Capital Adequacy Ratio of 39.21%, which it said is more than double the applicable regulatory minimum.

Management also stated that profit after tax increased 25% during the reported quarter and 33% during FY2025-26.

The company said it maintains liquidity sufficient to cover approximately two to three months of repayment obligations.

Operational changes

Management confirmed that fresh loan sanctions and disbursements have been temporarily slowed as a precaution until the supervisory audit is completed.

The company indicated that the impact of this cautious approach could be reflected in second-quarter business volumes.

Management further stated that more than 15,000 active loan accounts have completed field verification and KYC procedures.

Strategic developments

The board has approved a proposal to transition from a Housing Finance Company to a Non-Banking Finance Company, subject to the applicable regulatory process.

Management also stated that promoters recently increased their shareholding by 1% and expressed willingness to infuse additional capital if required.

Risks to watch

Investors should monitor the completion of the NHB supervisory audit, any subsequent regulatory communication, the pace of loan disbursements after the audit and the company's ability to sustain business growth while operating under temporary precautionary measures.