Infrastructure Leasing & Financial Services Ltd., the beleaguered infrastructure financier, reported an annual loss after writing off some investments and advances that it doesn’t expect to recover, Bloomberg News reported. The troubled shadow bank announced a loss of 225.4 billion rupees ($3.15 billion) for the financial year ended March, compared with a profit of 3.32 billion rupees in the previous 12 months, according to an exchange filing. Its total income during the year more than halved to 8.24 billion rupees.
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Shares of Dewan Housing Finance (DHFL) hit lower circuit on Tuesday after the insolvency court accepted bankruptcy proceedings against it, The Economic Times reported. DHFL became India’s first non-banking finance company to face insolvency proceedings after the Reserve Bank of India took the company to the Mumbai bench of the National Company Law Tribunal, which admitted the insolvency resolution plea on Monday.
An Indian shadow lender whose debt problems are being closely watched amid a broader industry crisis is facing pushback on its restructuring plan, Bloomberg News reported. Some creditors to Altico Capital India Ltd., which focuses on real estate lending, are concerned that the absence of fresh equity in the proposal fails to address a dramatic surge in bad loans, said two people familiar with the matter, asking not to be identified because the information isn’t public.
Yes Bank Ltd., an Indian lender caught in the country’s deepening shadow banking crisis, boosted its target for a capital raising to $2 billion after receiving commitments from new investors, Bloomberg News reported. The nation’s fourth-largest private lender said its board signed off on the capital increase, which is higher than the previous figure of $1.2 billion, at a meeting on Friday. Investors including Canada’s Erwin Singh Braich, SPGP Holdings and Citax Holdings Ltd.
Rating agencies have soured on India Inc as a credit crunch leaves businesses struggling to raise funds and pay debts, pushing default rates to their highest in five years, the Financial Times reported. Moody’s has a negative outlook on more than half of the non-financial companies it provides ratings on, its highest level in 10 years. The New York-based agency, which in early November downgraded its credit outlook for India to negative, has lowered its outlook for oil and gas companies such as Bharat Petroleum and information technology groups Infosys and Tata Consultancy
The Reserve Bank of India has filed an application to begin bankruptcy proceedings against shadow lender Dewan Housing Finance Corporation Ltd (DHFL), it said here on Friday, Reuters reported. DHFL, once one of India’s top shadow lenders, owes its creditors - which include mutual funds, banks, pension funds, insurance firms and retail investors - close to 1 trillion rupees ($13.93 billion). The country’s shadow banking sector, a key source of credit to millions, has been plagued by a credit crunch triggered by the collapse of lending major IL&FS last year.
The Mumbai Bench of the National Company Law Tribunal has directed the Department of Telecommunications not to cancel or terminate the telecom license and spectrum granted to Aircel Ltd, Bloomberg Quint reported. Aircel, which had telecom license and spectrum in nine telecom circles, is undergoing insolvency resolution process. It had filed a voluntary insolvency petition in March 2018 citing operational difficulties and owes around Rs 27,000 crore to its creditors and vendors.
The Supreme Court ruling in Essar Steel matter is a "watershed moment" for the insolvency jurisprudence and takes away excuses of parties to halt resolution process midway, according to IBBI Chairperson M S Sahoo, Business Standard reported. The Insolvency and Bankruptcy Code, 2016 envisages closure of a corporate insolvency resolution process (CIRP) in a time-bound manner.
The government plans to amend the Insolvency and Bankruptcy Code (IBC) to provide immunity to companies taking over stressed assets from prosecution for financial crimes committed by erstwhile promoters, Firstpost reported. This will help make the insolvency process more attractive for the bidders and instill confidence in them, sources said. This will help make the insolvency process more attractive for the bidders and instill confidence in them, sources said.
India’s Prime Minister Narendra Modi is putting the flagging economy back on center stage after announcing the biggest privatization drive in more than a decade and making renewed attempts to ring fence the crisis-ridden shadow banking sector, Bloomberg News reported. The country is in the midst of a deepening slowdown amid waning consumption -- the bedrock of the $2.7 trillion economy.