Shares of AAVAS Financiers Ltd plunged 8.24 per cent in Monday's trade to hit a low of Rs 1,351. As the early trading session progressed, the stock partially recovered and was last seen trading 3.25 per cent lower at Rs 1,424.45. At this level, the stock has declined 34.55 per cent on a year-to-date (YTD) basis.

The stock declined today amid reports alleging discrepancies in the classification of certain loans by the company. AAVAS Financiers, in its clarification, said, "This is to inform you that Aavas Financiers Ltd has noted news reports referring to alleged discrepancies in certain loan classifications, purported reversal of refinancing facilities by the National Housing Bank (NHB), and management changes at the Company linked to such purported reversal of refinancing."

The company refuted the assertions and insinuations contained in the proposed reports. "The contents of the report are misleading, malicious, speculative and not an accurate characterisation of the Company’s engagement with NHB," it added.

"If any development arises that requires disclosure under applicable law, including Regulation 30 of the Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company will make the requisite disclosure at the appropriate stage. Based on the facts presently available to the Company, no such disclosure is necessitated at this stage," AAVAS Financiers also said.

"NHB, in the ordinary course of its regulatory and refinancing oversight, conducts periodic audits, reviews and supervisory engagements with housing finance companies, including Aavas and one such inspection is ongoing and has not concluded. Such engagements are a routine part of the regulatory framework applicable to housing finance companies and do not, by themselves, constitute an adverse regulatory finding, penal action, or direction to reverse or repay refinancing facilities," it further stated.

Separately, the company's Board has accepted the resignation of Ghanshyam Rawat, President and Chief Financial Officer (CFO) and Ashutosh Atre, President and Chief Risk Officer, from their respective positions, with effect from September 21, 2026.

Additionally, it approved the appointment of Ghanshyam Gupta as the interim CFO and Punit Purushottam Agarwal as the interim Chief Risk Officer with effect from June 22, 2026.