The recovery as a percentage of gross nonperforming assets moderated to 12.8 percent in 2020-21 from 15.8 percent in the previous fiscal year against the backdrop of the pandemic, Minister of State for Finance Bhagwat K Karad informed India’s Parliament on Monday, the Business Standard reported. As per Reserve Bank of India data on global operations, he said, scheduled commercial banks (SCBs) have recovered an amount of Rs 4,18,687 crore during the last three financial years.
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Realty developers Mantra Properties and Ashdan Developers are in fray to acquire Pune-based real estate developer D S Kulkarni Developers through the ongoing insolvency process with separate bids of over Rs 800 crore each, the Economic Times of India reported. While Mantra Properties has bid Rs 880 crore, Ashdan Developers has bid Rs 827 crore in the third revision of their plans to acquire the debt-laden company and its projects. The Committee of Creditors (CoC) is expected to take a final call on both the resolution plans this week.
India's central bank has ordered Mastercard to stop adding new customers for failing to comply with the country's data storage rules, escalating a dispute between Indian authorities and U.S. financial services groups over the control of customer data, the Financial Times reported. The Reserve Bank of India said that Mastercard had not complied with rules introduced in 2018 that bar payment companies from transferring customer data overseas. The regulations, which were fiercely resisted by U.S. payment companies, required all financial data to be stored exclusively in India.
Adani Enterprises Ltd. has taken control of Mumbai’s international airport from GVK Group, in a bold bet by billionaire Gautam Adani that travel will stage a rapid recovery after being crushed by the pandemic, Bloomberg News reported. The deal for Mumbai International Airport Ltd., India’s second busiest, makes Adani Airport Holdings Ltd. the nation’s largest airport infrastructure company, accounting for 25% of all passenger traffic and 33% of air cargo, according to a statement late Tuesday.
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India formally set up a bad loan bank as part of the nation’s ongoing efforts to remove one of the world’s largest piles of soured debt from the balance sheet of financiers and accelerate lending, Bloomberg News reported. The firm was registered as the National Asset Reconstruction Company Ltd. on July 7 with Padmakumar Madhavan Nair as the managing director, according to filings with the Registrar of Companies, where firms must register before becoming operational. NARCL’s paid-up capital is 746 million rupees ($10 million), according to the filing.
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The National Company Law Appellate Tribunal (NCLAT) has closed the insolvency proceedings against Oyo and its subsidiary Oyo Hotels and Homes (OHHPL), the Times of India reported. The tribunal’s order disallowed the intervention of external parties, including the Federation of Hotel & Restaurant Associations of India (FHRAI), in the matter.
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The National Company Law Appellate Tribunal (NCLAT) has allowed withdrawal of insolvency against OYO Hotels and Homes Private Limited (OHHPL), which is a subsidiary of OYO, Swarajya reported. The order effectively concludes the insolvency proceedings against the company. The tribunal's order disallowed the intervention of external parties, including FHRAI. In a statement, OYO said that it will continue to work closely with its hotel partners for the closure of any pending claims.
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Indian tycoon Gautam Adani is seeking a loan of about 75 billion rupees ($1 billion) to refinance existing debt of Mumbai’s international airport, Bloomberg News reported. Barclays Plc and JPMorgan Chase & Co. are among banks in discussions to provide the funds to Adani Airport Holdings Ltd., the people said. Deutsche Bank AG is also in talks to help with the financing. Mumbai International Airport Ltd. has a debt of about 80 billion rupees.
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Five years ago, India came up with a legal answer to its perennial economic challenge of rescuing the money stuck in zombie firms, according to a Bloomberg News commentary. Unlike China, which has the cushion of high savings, India’s inefficient use of limited domestic capital has meant a chronic inability to put its swelling ranks of youth to work. After toying with the idea for more than a decade, the solution New Delhi hit upon was a modern bankruptcy code. The numbers have been a mixed bag.
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Devas Multimedia Pvt., a company seeking over $1.2 billion it won in international arbitration from India, has joined Cairn Energy Plc in seeking to seize Air India Ltd.’s assets abroad, Bloomberg News reported. Calling the flagship airline an “alter ego” of the Indian state and therefore liable for the sovereign’s debts, Devas filed a petition in New York asking Air India to pay the amount or forfeit its U.S. property including planes, cargo handling equipment and artwork.
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