The Reserve Bank of India asked lenders to set aside more cash, stepping up measures to drain liquidity in the financial system, Bloomberg News reported. Bank stocks fell. The central bank ordered lenders to set aside 10% of their incremental deposits garnered between May 19 and July 28, Governor Shaktikanta Das said Thursday. The move will remove a little over one trillion rupees ($12 billion) from the banking system, he said after leaving interest rates unchanged.
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Banks have written off bad loans worth Rs 14.56 lakh crore in the last nine financial years starting 2014-15, Parliament was informed on Monday, the Economic Times of India reported. Out of the total Rs 14,56,226 crore, written off loans of large industries and services stood at Rs 7,40,968 crore. Scheduled Commercial Banks (SCBs) have recovered an aggregate amount of Rs 2,04,668 crore in written-off loans, including corporate loans, since April, 2014 and up to March, 2023, Minister of State for Finance Bhagwat Karad said in a written reply to Lok Sabha.
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The National Company Law Tribunal (NCLT) Mumbai recently had allowed an application filed by Edelweiss Asset Reconstruction Company Limited and initiated Corporate insolvency proceedings against well known art director Nitin Desai’s ND’s Art World Pvt Ltd over a debt of Rs 252 crore, the Economic Times of India reported. Edelweiss had filed the company petition last year to initiate Corporate Insolvency Resolution Process against the Corporate Debtor for unresolved financial debt of Rs 252 crore.
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National Company Law Tribunal has appointed EY-backed Shailendra Ajmera as resolution professional (RP) of Coffee Day Global, according to an order uploaded on its website, the Economic Times of India reported. The bankruptcy court has admitted Coffee Day Global company for insolvency proceedings on the behest of IndusInd Bank, which filed a claim in court that the company had defaulted on term loans of Rs 115 crore that were disbursed to it in 2019. Ajmera is also the resolution professional of insolvent Wadia group airline, Go First.
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A group of lenders to Byju’s will work with the Indian education-technology startup to change the terms of a $1.2 billion loan after the company fell into distress, Bloomberg News reported. A steering committee of creditors — who together own more than 85% of the term loan — and Byju’s have agreed to work toward a “signed and completed” amendment before Aug. 3, the lenders said in a statement Monday, confirming a Bloomberg News story.
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Indian auto parts maker Samvardhana Motherson International (SMIL)said on Monday that it made a second acquisition this month, buying Germany's Dr. Schneider Group for 118.3 million euros ($131.6 million), Reuters reported. Dr. Schneider Group, a unit of Dr. Schneider Holding, manufactures interior components for vehicles such as panels and lighting. The German company had filed for insolvency in September 2022 due to "a failed operational and financial restructuring", Samvardhana Motherson said in a statement, referring to the acquisition, which was done through an insolvency process.
Coffee Day Global, which operates the Cafe Coffee Day chain across India, was admitted for corporate insolvency by the Bengaluru bench of the bankruptcy court last week, said people aware of the development, the Economic Times of India reported. The National Company Law Tribunal (NCLT) passed an oral order on Thursday to admit the unlisted company based on a petition filed by IndusInd Bank. A detailed order is yet to be uploaded by the tribunal.
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Go Airlines (India) Ltd has received claims worth 240 billion rupees ($2.9 billion) from operational and financial creditors so far as part of the carrier's ongoing insolvency, two banking sources told Reuters. The process is in line with procedural requirements under Indian law which allow every creditor a right to payment and remedy by submitting claims if a company is under bankruptcy. Once the claims are filed, the resolution professional has to check its authenticity.
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India on Thursday ordered a halt to its largest rice export category in a move that will roughly halve shipments by the world's largest exporter of the grain, triggering fears of further inflation on global food markets, Reuters reported. The government said it was imposing a ban on non-basmati white rice after retail rice prices climbed 3% in a month after late but heavy monsoon rains caused significant damage to crops.
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IDBI Bank on Thursday moved the National Company Law Appellate Tribunal (NCLAT) challenging a National Company Law Tribunal (NCLT) order of 19 May, which had rejected the bank's plea to initiate insolvency proceedings against Zee Entertainment Enterprises, said a counsel aware of the matter, Live Mint reported. The insolvency application was filed before the dedicated bankruptcy tribunal to recover dues of ₹149.60 crore from Zee Entertainment. The case has been filed with the court registrar, but is yet to be listed for hearing.