The shipyard controlled by embattled Indian tycoon Anil Ambani is facing the prospect of bankruptcy after failing to get creditors’ approval for restructuring 70 billion rupees ($970 million) of debt, people familiar with the matter said, Bloomberg News reported. India’s bankruptcy tribunal will consider putting Reliance Naval & Engineering Ltd. in bankruptcy on Wednesday as no new repayment plan was submitted after lenders led by IDBI Bank Ltd. rejected an earlier offer in July, the people said, asking not to be named as the information is not public.

India’s biggest bank overhaul in decades may hurt the nation’s bad loan clean-up and slow the lending approvals needed to reverse its economic slump, Bloomberg News reported. Prime Minister Narendra Modi’s government late Friday surprised observers by announcing several state bank mergers, a move it said would create larger, healthier lenders. While that may be true in the long term, analysts predict that the efforts may be hurt by a near-term shift in management attention to aligning resources such as personnel, technology and branch networks.

The National Company Law Tribunal (NCLT) has ordered start of insolvency proceedings against NCR-based realty firm Three C Projects Ltd and also appointed an Interim Resolution Professional (IRP) to take over the management of the debt-ridden company, The Economic Times reported. A two-member principal bench, headed by President Justice M M Kumar, admitted a plea filed by five flat buyers who had booked homes in the company's Lotus Zing project in Noida, Uttar Pradesh.

Mutual funds continue to shun Indian shadow lenders’ debt despite a liquidity boost from the nation’s central bank and measures from the government to quell investor wariness toward them, Bloomberg News reported. Debt mutual funds spooked by a string of defaults and credit rating downgrades of the non-bank lenders slashed investments in notes from shadow banks to 14% of their total assets in July, the lowest in nearly two years, data from markets regulator show. The funds invested 7.1% of their assets in commercial papers from shadow lenders and 6.9% in bonds last month, the data showed.

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.

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.