India

The deadline for submitting preliminary interest to bid for insolvent Go Airlines (India) is likely to be extended by another two-to-three weeks amid lack of any such application by suitors, two banking sources told Reuters on Friday. The resolution professional for the company, which operated the Go First carrier, had in July invited investor interest on behalf of creditors after the airline filed for insolvency in May. The deadline was initially set for Aug. 9, but was later extended to Sept. 8.

The Reserve Bank of India has been frequently intervening in the non-deliverable forward (NDF) market to make sure that the rupee does not drop to a record low, four bankers told Reuters on Thursday. The rupee was at 83.1525 to the U.S. dollar as of 11:16 a.m. IST, not too far from its record low of 83.29 hit in October 2022. The currency has largely avoided the decline in its Asian peers. "The RBI intervened on NDF in the morning (before local over-the-counter, OTC, markets opened) and it did the same yesterday," the head of treasury at a private sector bank said.

Financial technology companies should create a self-regulatory body to address their needs and challenges, the Reserve Bank of India Governor Shaktikanta Das said on Wednesday, as the industry grows at a break-neck speed due to surging demand for digital payments and borrowings, Reuters reported. "I would like to use this opportunity to urge and encourage the fintechs to establish a self-regulatory organisation or SRO themselves. From the Reserve Bank, we are willing to engage with you," Das said while delivering the keynote address at the Global FinTech Fest 2023 (GFF).

The National Company Law Appellate Tribunal (NCLAT) on Thursday issued notice to Zee Entertainment Enterprises Ltd (ZEEL) in a plea by IDBI Bank to initiate insolvency proceedings against the company, the Hindu Business Line reported. IDBI Bank, in its plea, said it was unable to recover unpaid dues of around ₹150 crore from Zee. The tribunal instructed both parties to submit replies and rejoinders, setting the next hearing for the matter on October 11.

India’s economy registered impressive growth of 7.8% in the first quarter of the current financial year (April-June), attributed to good performance by the agriculture and financial sectors, according to official data released on Thursday, the Associated Press reported. The World Bank says India is one of the fastest-growing economies of the world and is poised to continue on this path. India's agriculture sector recorded growth of 3.5% in three months, up from 2.4% in the April-June quarter last year, according to the data released by the government-run National Statistical Office.

The Adani Group said cash and profit generated from its sprawling infrastructure business can cover all the debt maturing each year in the coming decade, messaging that’s part of the Indian conglomerate’s latest effort to shore up investor confidence months after a damaging short seller attack, Bloomberg News reported. In a credit report released Thursday, the power-to-port conglomerate founded by billionaire Gautam Adani said its cash flow generated from business operations and balances stood at 778.9 billion rupees ($9.4 billion) as of end-March.

Just the threat of legal action has been pushing many promoters to pay their dues, according to Indian government data, the Economic Times of India reported. Many companies' managements have reportedly paid back their dues shortly after lenders filed cases with the National Company Law Tribunal (NCLT), out of fear of losing control over their companies. Creditors, banks and suppliers have recovered dues pretty much immediately after filing under the Insolvency & Bankruptcy Code (IBC), without even waiting for petitions to be admitted.

Liquidity in the banking system has slipped into a deficit for the first time in FY24 as the Reserve Bank of India's (RBI) decision to impound a chunk of banks' extra funds - and hence reduce inflation risks - has led to a cash shortfall amid tax outflows, the Economic Times of India reported. Daily central bank data showed that the RBI injected funds worth ₹23,644.4 crore into the banking system on August 21, marking the first infusion of cash since March 27. An injection of funds by the RBI reflects deficit liquidity conditions in the banking system.

State-run Bharat Heavy Electricals has challenged an insolvency petition filed against West Bengal-based coal power producer Hiranmaye Energy, as it will "stall" BHEL's efforts to enforce a ₹388.4 crore arbitration award against the company, the Economic Times of India reported. BHEL has filed an application before the Kolkata bench of the National Company Law Tribunal (NCLT), seeking cancellation of the insolvency petition filed by REC.

GQG Partners for the second consecutive day bought shares of JSW Energy in the open market on Wednesday, the Economic Times of India reported. GQG Partners Emerging Market Fund bought 10,284,024 shares or 0.6% stake in the power producer at Rs 341.70 apiece for Rs 351 crore. On Monday, GQG Partners acquired more than 1.2 crore shares of JSW Energy at Rs 345 apiece, aggregating Rs 411 crore. Meanwhile, promoter group entity JSW Investments Ltd sold 1.3% stake in JSW Energy Ltd through the open market on Wednesday for Rs 718 crore.