India’s central bank governor has warned that the state-dominated banking system will need to push ahead with an infusion of funds to withstand the country’s deepening coronavirus crisis, the Financial Times reported. Several of India’s largest and best-performing banks, including Kotak Mahindra, ICICI and State Bank of India, have been raising more equity in the months since the coronavirus pandemic broke out. But Shaktikanta Das, the Reserve Bank of India governor, said smaller private and public lenders needed to shore up their capital bases ahead of an expected bad loans shock.

The Reserve Bank of India (RBI) took control of PMC last September after it was accused of fraud and concealing non-performing loans, Reuters reported. PMC’s top officials and the owners of a realty company that received the bulk of the loans were arrested. The withdrawal cap has left many of PMC’s over 900,000 depositors in deep difficulty. Some say they are struggling to clear loans or pay their children’s school fees, while others say they depend on friends for their groceries.

The Supreme Court on Monday reserved its order on the issue of recovery of adjusted gross revenue (AGR) dues of insolvent telcos, Mint reported. The apex court said it will also clarify additional liabilities, if any, of Reliance Jio and Bharti Airtel on account of past dues on the spectrum they bought from Reliance Communications, Videocon and Aircel respectively. SC noted that if the seller of spectrum did not clear its dues before sale, the liabilities would be transferred to the buyer as per trading guidelines.

An Indian court has agreed to hear a petition by the nation’s largest lender seeking to initiate personal bankruptcy against tycoon Anil Ambani after the former billionaire failed to repay debt, Bloomberg News reported. A two-member panel of the National Company Law Tribunal, or NCLT, in Mumbai has appointed a bankruptcy administrator to verify a claim by State Bank of India, or SBI, that Ambani offered about $160 million of personal guarantees while seeking loans in 2016 for his now insolvent Reliance Communications Ltd.

New measures to allow Indian lenders to restructure loans will provide a “durable” resolution for cash-strapped businesses and help revive the economy, according to the central bank’s chief, Bloomberg News reported. “On one hand health of banks is very important and on the other hand businesses are under a lot of stress due to covid,” Reserve Bank of India Governor Shaktikanta Das Das said in an interview with CNBC-Awaaz on Friday. The plan has replaced a blanket loan moratorium that’s due to expire later this month, he said.

The deadline for completion of Jet Airways (India) Ltd's insolvency resolution process, which was earlier extended till 21 August due to the nationwide lockdown to contain the spread of the covid-19 virus, will be extended further due to the pandemic, Mint reported. However, the resolution professional (RP) entrusted by the lenders of the airline to complete the insolvency process, hasn't given a fresh deadline yet.

Expressing concern over non-payment of the Adjusted Gross Revenue (AGR) related dues by the telecom companies which are under insolvency, the Supreme Court on Thursday said "without paying for the horse, telecos are taking a ride,” Deccan Herald reported. The apex court said it is “extremely worried” that almost the entire AGR dues will be “wiped out” in the IBC process. The top court wondered can a liability like AGR related dues be wound up, under the guise of selling spectrum under the Insolvency and Bankruptcy Code (IBC).

A 8,764% surge in the shares of a company with a minuscule public shareholding has prompted India’s regulator to consider changing its rules for firms emerging from the nation’s bankruptcy process, Bloomberg News reported. The Securities & Exchange Board of India has sought comments on a proposal to cut the time given to companies that re-list after bankruptcy resolution to boost the free float to at least 10% within six months from 18 months currently.

The National Company Law Appellate Tribunal (NCLAT) has ruled that home-buyers cannot drag realty companies through the insolvency process for recovering monies awarded to them by a real estate regulator, The Hindu Business Line reported. The NCLAT ruled that a home-buyer cannot be treated as a financial creditor when the real estate company is unable to honour a decree awarded by the State-level Real Estate Regulatory Authority (RERA). Home-buyers need to take recourse to the civil law to recover the money.

AZB & Partners and De Brauw Blackstone Westbroek advised the resolution professional managing the insolvency of Jet Airways when the airline sold two floors of a Mumbai building to a company controlled by Brookfield Asset Management, the Indian Business Law Journal reported. Khaitan & Co advised Brookfield. The National Company Law Tribunal (NCLT) had given the go-ahead for the ₹4.9 billion (US$65 million) sale after both HDFC, to which Jet Airways had mortgaged the premises, and the committee of creditors of Jet Airways had approved it.