The Reserve Bank on Monday superseded the boards of Srei Infrastructure Finance as well as Srei Equipment Finance, citing concerns over governance and payment defaults, and decided to refer the two NBFCs for resolution under the insolvency law. This is only the second time in as many years that the Reserve Bank of India (RBI) is referring entities for the resolution process under the Insolvency and Bankruptcy Code (IBC) after taking first ever such step in the case of DHFL back in 2019. Superseding the boards of the crisis-hit Srei Infrastructure Finance Limited (SIFL) and Srei Equipment Finance Limited (SEFL), the RBI has appointed Rajneesh Sharma, former Chief General Manager of Bank of Baroda as the administrator to manage the affairs of the two companies.
Srei Infrastructure Finance is set to be the first Indian company to go for Islamic financing for over Rs 200 crore
Banks do extensive investigation before declaring an account fraud; they owe it to us as they deal with our money. Why would they try to fix an innocent borrower? asks Tamal Bandyopadhyay.
Superseding the boards of two non-banking financial companies (NBFCs) in the Srei group will neither create liquidity challenges for sound entities, nor build systemic crises because the markets have factored in the problems with the Kolkata-based firms. Such regulatory steps will help in making the NBFC space more robust, bankers and market experts said. The action should have begun earlier because the Reserve Bank of India (RBI) had done a special audit last financial year and asked the group to make provisions for assets considered stressed, analysts said.
The Budget is commendable, as without making any major tax changes it has targeted a 4.6 per cent fiscal deficit for 2011-12 by focusing on achieving 9 per cent growth.
Srei Infra Finance group chief financial officer Sanjeev K Sancheti described the asset as a good buy as it is a fully secured debt.
The company has similar pact with Bharti Infratel.
Srei Infrastructure Finance last month sold 50 per cent stake in a part of its business equipment financing arm to France's largest bank BNP Paribas for Rs 775 crore
SREI Infrastructure Finance Limited, one of the leading infrastructure project finance and infrastructure equipment finance company in India, got listed in the LSE on Thursday.
A lot depends on how Srei shapes up under the new administrator and his team, which is critical for investors' interest.
Srei International Finance Limited, which would be renamed as Srei Infrastructure Finance Limited, expects its asset base growing to over $1 billion by 2006-07 on tremendous growth in the infrastructure sector of the country.
Experts say, investors will be better off exiting them at higher levels and investing in stocks of fundamentally sound companies.
PE giants Apollo, Bain Capital and Advent International are keen to pick stake in Viom
The cash crunch following demonetisation and transaction fees that do not cover costs are among the reasons why the sector is struggling.
The poor deployment of WLATMs has tripped what the central bank sought to achieve back in 2012.
India Inc raised $2.78 billion from overseas markets in October this year, up 44 per cent from a year ago, according to the Reserve Bank data released on Friday.
Investors remain cautious ahead of F&O expiry.
New norms are in place to strengthen regulations for this set of lenders which has been playing a critical role in Asia's third largest economy, notes Tamal Bandyopadhyay.
Lenders to Kingfisher Airlines, led by State Bank of India, had moved courts to get residual rights over these shares after Srei recovered the collateral from the defunct Kingfisher Airlines, making it difficult for Srei to sell the shares, said a legal source.
The finance minister asked lenders to identify eligible borrowers and reach out to them and urged for quick implementation of a sustained resolution plan for the revival of every viable business.
With the Jaypee acquisition, the Suraksha group, which made lenders an offer of Rs 7,736 crore, will be able to expand its footprint in north India after making inroads in Mumbai's real estate market over the past year. Sudhir Valia, the promoter, was a co-founder and executive director of India's biggest pharmaceutical firm, Sun Pharmaceuticals, and is a close relative of Dilip Shanghvi.
Hemant Kanoria tells Niraj Bhatt why understanding the dynamics of the borrower's business is critical for the lender.
India is an under-penetrated ATM market with only 98 ATMs for every 10 lakh of population.
Eight FDI proposals worth Rs 1,311.54 crore (Rs 13.11 billion), including that of Norwegian telecom firm Telenor, have been cleared by the government on the basis of FIPB approvals.
Since last month, the realty (down 23%), auto (down 16%) and finance (down 14%) indices have underperformed the market by falling over 13%, as against 8% decline in the benchmark indices
American Tower bulks up in India with $1.2 billion Viom stake buy
'2018 has seen a bi-polar market.' 'Thanks to gains in some key stocks, market returns are positive. But there has been huge wealth destruction in the small and mid-cap space.'
White labeled ATMs are set up by private non-bank companies that own and operate their own brand of ATMs.
It has been a year since the Reserve Bank of India (RBI) initiated prompt corrective action (PCA), an exercise that puts weak banks under central bank scrutiny, against the 94-year-old Lakshmi Vilas Bank (LVB). But recently, this low-profile Chennai-headquartered bank found itself attracting some unwonted publicity when 60 per cent of its shareholders voted against a proposal to re-appoint seven directors, including one of the promoters, K R Pradeep (who holds around 2 per cent), and the company's managing director & chief executive officer S Sundar.
Piramal will join the JSW, Vedanta and Tata groups, which are bidding aggressively for distressed assets, especially in the infrastructure and steel sectors.
Aditya Birla Nuvo gets board's nod, Videocon submits application.
The Rupee is expected to weaken further against the dollar.
'It is easy to dramatise the events of today, but it is far more important to focus on the fact that we have a radically overvalued financial sector. It is a house of cards.'
On Friday, the euro weakened to a near 14-month-low against the dollar, after the European Central Bank announced a fresh round of stimulus and promised more if required.
Firms are still barred from holding board positions in the special purpose vehicle that will develop the airport.
The view among the regulator and the government is that the currency is overvalued
The central bank has been intervening in the foreign exchange market by buying dollars, and this is capping the rupee's gains.
The Street had factored in the NDA win, owing to which the appreciation in the rupee is expected to be limited
The RBI has agreed to consider the application of India Post in consultation with the government.
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