India’s largest lender is hoping to capitalize on the country’s shadow banking crisis by building its mortgage and small business loan book as the non-banks are forced to pull back, Bloomberg News reported. State Bank of India, which is slowly emerging from a period of massive provisioning on loans to large corporates like Essar Steel India Ltd., sees opportunities in taking business from the shadow banks without creating new asset quality problems, according to Chairman Rajnish Kumar.

India’s shadow banks are likely to see a further squeeze on their profit margins after the Reserve Bank of India signaled it will tighten liquidity requirements to bring them in line with the country’s more closely regulated commercial banks, Bloomberg News reported. Instead of providing a much-expected liquidity window to non-bank finance companies via the regular lenders, the central bank took a tougher stance on Friday by issuing draft guidelines requiring most NBFCs to set aside a liquidity buffer by investing in high-quality liquid assets, primarily sovereign bonds.

The Delhi bench of the National Company Law Tribunal (NCLT) has dismissed ICICI Bank's application seeking insolvency proceedings against Hyderabad Ring Road Projects Pvt Ltd on the ground of duplicacy as proceedings are already underway against Era Infra Engineering, of which the former firm is a special purpose vehicle (SPV), Business Standard reported. The two-judge bench headed by NCLT President M.M. Kumar dismissed the petition, saying "on account of duplicacy of the claims the petition cannot be entertained".

ndia’s debt-ridden Anil Ambani group will exit the asset management business by selling shares in its joint venture to Japanese partner Nippon Life Insurance Co., which will take a controlling stake in India’s fifth-biggest mutual fund, Bloomberg News reported. Ambani’s Reliance Capital Ltd. signed a binding definitive agreement to sell 32.12% of Reliance Nippon Life Asset Management Ltd. for 45.2 billion rupees ($649 million) to the Japanese insurer, taking the latter’s shareholding to 75%, the companies said in statements on Thursday.

Shares of Indian non-bank lenders for housing plunged on reports that Dewan Housing Finance Corp. has stopped accepting fresh money and halted premature withdrawals from existing deposit plans, Bloomberg News reported. The company, which was already facing difficulties in the bond market following a string of recent downgrades, slumped as much as 18%, the most since Feb. 1, on Wednesday. Indiabulls Housing Finance Ltd. fell as much as 4.1% before paring losses, while PNB Housing Finance Ltd. declined as much as 2.6%.

The Reserve Bank of India (RBI) said on Tuesday its central board had decided to create a separate supervisory and regulatory cadre within the bank after reviewing the current supervisory structure, Reuters reported. The board also reviewed the current economic situation, global and domestic challenges and various areas of operations of the central bank, along with the medium-term strategy document covering the RBI’s Mission Statement and the Vision Statement.

Signs of a turnaround at its marquee Jaguar Land Rover unit may not be enough to ease the challenges facing India’s oldest and most-storied business empire, Bloomberg News reported. The Tata Group bought the British luxury carmaker in 2008 for $2.3 billion, and it’s lately become a drag on the salt-to-software conglomerate, racking up losses in three quarters through December. Although Jaguar posted a net income of 119 million pounds ($151 million) this week, debt at owner Tata Motors Ltd.

Reliance Capital Ltd., Anil Ambani’s financial services company, protested against a three-step downgrade by Care Ratings that put its credit score two notches above junk, Bloomberg News reported. Care Ratings cut the firm’s long-term debt program to BBB from A and kept it on credit watch with developing implications, according to statements from Reliance Capital and the rating company on Saturday.

India’s debt-ridden Infrastructure Leasing and Financial Services (IL&FS) said on Sunday that Japan’s Orix Corp has expressed an interest in buying out the remaining 51% stake in IL&FS’s wind energy assets, Reuters reported. Orix Corp plans to buy the stake to exercise its right under the terms of an existing agreement that allows Orix to match the price offered by the highest bidder for buying a stake in the wind power plants, IL&FS said.

India’s central bank said on Thursday that shadow banks with asset size of more than 50 billion rupees should appoint a chief risk officer in a move to tighten regulation after a series of defaults at top lender Infrastructure Leasing & Financial Services’ (IL&FS), Reuters reported. The government took control of IL&FS last year after its default triggered fears about contagion in India’s financial sector.