After sending two pesky central bank governors packing in a little over two years, Indian bureaucrats have turned their attention to unwinding the monetary authority’s autonomy, a Bloomberg View reported. Their first move, unveiled Thursday, is an innocuous – even laudable – infusion of 410 billion rupees ($5.9 billion) into troubled state-run lenders, bumping up this fiscal year’s outlay for bank recapitalization by 63 percent to 1.06 trillion rupees. The fresh capital partially replaces a shortfall in the  2.11 trillion rupee bank recap announced in October last year.

Essar Steel Asia Holding, the holding company of the bankrupt Essar Steel that was controlled by the Ruias, on Monday told the Ahmedabad bench of NCLT that it was "highly unusual" for lenders to not even consider its debt settlement proposal which was higher than its rival offer, BloombergQuint reported. The Essar Steel Asia Holding had proposed to the committee of creditors, led by State Bank of India, to pay an upfront Rs 54,389 crore to retake the management of Essar Steel, but approached the National Company Law Tribunal after not receiving any reply from creditors.

Embattled liquor tycoon Vijay Mallya's legal troubles continue to mount as he is set to face bankruptcy proceedings in the U.K. high court next year, brought by a consortium of Indian banks in their attempt to recoup of unpaid debt worth nearly 1.145 billion pounds, the Times of India reported.

RattanIndia Power Ltd., a electricity generator backed by hedge fund Farallon Capital Management, is close to restructuring about $500 million of stressed loans, Bloomberg News reported. The company, which is building coal-fired power plants to produce 5,400 megawatt of electricity -- enough to light up 7 million rural homes in India -- has offered to pay banks 52 percent of the obligations of its project in Amravati in Maharashtra state. The talks with creditors are on-going and there’s no certainty they will result in a transaction.

RattanIndia Power Ltd., a electricity generator backed by hedge fund Farallon Capital Management, is close to restructuring about $500 million of stressed loans, Bloomberg News reported. The company, which is building coal-fired power plants to produce 5,400 megawatt of electricity -- enough to light up 7 million rural homes in India -- has offered to pay banks 52 percent of the obligations of its project in Amravati in Maharashtra state. The talks with creditors are on-going and there’s no certainty they will result in a transaction.

India’s state-run banks sought an easing of rules related to bad loan recognition in a meeting with newly-appointed central bank Governor Shaktikanta Das, people familiar with the matter said. The heads of seven banks also asked for a liquidity boost for the financial system to help non-bank financiers tide over a cash crunch, the people said, asking not to be identified as the discussions are private, Bloomberg News reported. An easing of lending curbs on 11 weak state-run lenders was also discussed, they said. Regulations have limited banks’ ability to extend credit.

Mutual funds in India can separate distressed and illiquid assets in their portfolios to deal with any potential credit crisis, the market regulator said on Wednesday. The Securities and Exchange Board of India (SEBI) was in talks with the industry to allay fears of contagion effect on mutual funds due to a liquidity crisis faced by the country’s non-banking finance companies (NBFCs), its chief had said last week, Reuters reported.

Jaypee group’s homebuyers on Monday moved the Supreme Court seeking modification of its August order which remanded the insolvency case against Jaypee Infratech (JIL) to the National Company Law Tribunal’s Allahabad bench to be started afresh. The homebuyers want the apex court to declare them “secured financial creditors” on a par with banks, the Financial Express reported. A bench led by Justice Madan B Lokur said it would come up for hearing before an appropriate bench.

Indian stocks are still holding on to gains for the year, but they’re evaporating fast. Exit polls last week from state elections were the latest hit to the market, sending the S&P BSE Sensex Index down as much as 1.8 percent on Monday, the most intraday since Oct. 19, Bloomberg News reported. The results showed that Prime Minister Narendra Modi’s party is set for tight electoral contests in key states before next year’s general election, adding to uncertainties in a market already hurting from fluctuating oil prices and defaults at an infrastructure financier.