Star Housing Finance Applies to RBI for Director Appointments

Star Housing Finance Ltd has submitted an application to the Reserve Bank of India (RBI) seeking prior approval to appoint Mr. Anil Sachidanand and Mr. Ashish Jain as Additional Non-Executive Directors.

These appointments are intended to enhance the strategic oversight and expertise of the company's board. The proposals were previously intimated by the company on March 31, 2026, and are subject to the RBI's clearance.

The move comes as Star Housing Finance navigates significant challenges. In February 2026, India Ratings & Research downgraded its credit rating to 'IND D' due to missed debt payments and severe liquidity stress. Further complicating governance, a Non-Executive Independent Director resigned on March 31, 2026, citing serious issues related to regulatory compliance, internal controls, and liquidity.

Adding to the scrutiny, the company is currently undergoing a snap audit by the National Housing Bank (NHB) initiated in April 2026, which has led to a mandated independent external audit.

If approved by the RBI, the new directors, expected to bring decades of experience in banking and financial services, could offer crucial strategic direction and enhanced oversight. This is considered vital given the company's recent financial distress and ongoing regulatory challenges.

Key risks for Star Housing Finance include dependency on RBI approval for the appointments, continued regulatory scrutiny following the NHB audits, persistent liquidity pressures, and a challenging 'IND D' credit rating. Underlying governance concerns, highlighted by the recent director resignation, also remain a point of focus.

Star Housing Finance operates in the competitive housing finance sector alongside peers such as LIC Housing Finance, PNB Housing Finance, Aadhar Housing Finance, and Can Fin Homes. As of September 30, 2025, the company managed Assets Under Management (AUM) of ₹568 crore across six states. Earlier, as of June 30, 2024, its AUM stood at ₹471.41 crores with over 4700 live accounts and an average loan size of ₹10 lakhs.

Investors and stakeholders will be closely monitoring the RBI's decision on the director appointments, the outcomes of the NHB's external audit, and the company's efforts to address its liquidity challenges and improve its financial standing.