The world’s worst performing major bank in stock markets this year is also sliding in the bond market after a credit rating downgrade, Bloomberg News reported. Yes Bank Ltd., one of India’s largest private-sector banks, has been rocked by asset quality worries due to heavy exposure to weaker borrowers amid mounting credit market strains. Moody’s Investors Service cut its rating on Yes Bank deeper into junk on Wednesday, citing concerns about its capital buffers and ability to raise funds.
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Credit analysts are keeping a watchful eye on signs of stress in Indian household debt after unemployment rose to a 45-year high and as lenders grapple with the worst soured debt levels of any major economy, Bloomberg News reported. India’s bad debt malaise has centered on corporate debt, and loans to individuals have been seen as safer and a growth opportunity for banks. Given the slowdown in the economy and a drying-up of credit from shadow banks, analysts are signaling potential risks, though publicly available data on personal loan arrears is sparse.
The NCLT has initiated insolvency proceedings against NCR-based real estate firm Raheja Developers after admitting a plea filed by one of its flat buyers. A two-member Principal bench, headed by President Justice M M Kumar, has appointed an interim resolution professional (IRP) to take over the management of the company, The Economic Times reported.
The National Company Law Appellate Tribunal (NCLAT) on Friday ordered liquidation of debt-ridden Amtek Auto as it declined lenders' request for extension of the insolvency resolution process deadline, Business Today reported. Amtek Auto was among the first list of the 12 companies that were referred by the Reserve Bank of India (RBI) in 2017 to respective banks for the initiation of insolvency process for defaults. UK-based Liberty House was selected as the highest bidder by the committee of creditors (CoC) of Amtek Auto.
The National Company Law Tribunal (NCLT) has initiated corporate insolvency resolution process against Umang Realtech under Section 7 of the Insolvency and Bankruptcy Code 2016, The Economic Times reported. The court has appointed Manish Kumar Gupta as the interim resolution professional (IRP) for the case. The IRP has been directed to make public announcement within three days of the order. The buyer, represented by advocate Aditya Parolia and Piyush Singh, partner, PSP Legal, had booked an apartment in Winter Hills 77 in March 2013 for Rs 1.01 crore.
Shares of DLF Ltd. plunged the most in almost three years after a newspaper reported that India’s top court is looking into whether the developer suppressed information about legal battles involving its biggest assets, Bloomberg News reported. The stock dropped 15.8% to 144.45 rupees in Mumbai on Thursday. Its fall dragged down the S&P BSE Realty Index to its worst performance among 19 sector sub-indexes compiled by the BSE Ltd.
India’s Shapoorji Pallonji Group is looking to sell its solar power plants and road assets to reduce debt by as much as 40 billion rupees ($558 million), a person with direct knowledge of the matter said, Bloomberg News reported. The 154-year-old group, controlled by the reclusive billionaire Pallonji Mistry and his family, expects the deals to be clinched by March next year, the person said, asking not to be identified as the discussions with prospective investors are private. A spokesman for the Mumbai-based conglomerate declined to comment on asset sales or the total group debt.
Housing Development & Infrastructure Ltd. fell to a record and Oberoi Realty Ltd. dropped as authorities intensify their clean up of India’s struggling property sector, Bloomberg News reported. Bankruptcy proceedings will begin against HDIL after creditor Bank of India filed an application, the developer said in a filing Tuesday, adding that it will appeal the decision.
Indian tycoons including Ajay Piramal and Pallonji Mistry are grappling with a prolonged realty slump that’s adding to the shadow banking crisis, showing that even the nation’s richest can’t escape widening cracks in the debt market, Bloomberg News reported. Ratings of some companies in the conglomerates run by billionaires Piramal and Mistry have been cut as the business environment worsened and funding costs rose.
Videocon Industries said on Monday it is unable to publish its financial results for the quarter ended June 30 due to the ongoing consolidation of insolvency proceedings of it along with other 12 group firms, The Economic Times reported. In a regulatory filing, the company said filing of the quarterly results have been delayed due to the complexity involved in the consolidation of corporate insolvency resolution process (CIRP) the 13 group companies as directed by the Mumbai bench of National Company Law Tribunal (NCLT).