SBI refuses to fund Patanjali’s Ruchi Soya buyout on its ownAs much as Rs 3,700 crore of the acquisition cost was supposed to have been funded by bank loans with Patanjali infusing Rs 600 crore from its own internal accruals. Bankers are also wary of funding the home-grown consumer goods company after rating downgrades by rating agencies Care and ICRA in October.
Banks brace for DHFL, telecom woesWith some respite after the curtains were drawn on the Essar Steel case, banks are still not breathing easy. Troubled Airtel and Vodafone-Idea posted record losses after the AGR ruling, which might keep profits of banks under check. RBI data show that banks have a Rs 1.15 lakh crore exposure to telecommunications as of Sept 2019, up 25% from a year ago.
Personal guarantees may aid bad loan resolutionIn a notification on November 15, the ministry of corporate affairs (MCA) included personal guarantees on corporate loans under the bankruptcy code effective from December 1. The promoters who have given personal guarantees include Jet Airways founder Naresh Goyal & The Ruia family which just last week lost its Rs 42,000 crore battle to keep Essar Steel.
Banks to take 55% haircut on Coastal Energen’s debt of Rs 6,500 croreLenders have agreed to sell the company’s debt to a consortium comprising Hong Kong’s alternative investment fund SSG Capital and the distressed debt unit of Deutsche Bank. A 55% haircut works out to an upfront cash payment of Rs 2,925 crore, which the lenders will receive in lieu of debt. They have also been offered a 15% equity in the firm.
RBI asks Indian banks to probe alleged data leak of 1.3 million cardsSecurity researchers at Singapore-based Group-IB had found that card details were being sold at a price of $100 per card, ZDNet had reported. The value of the leaked database has been estimated by the group at $130 million. There were about 51.7 million credit cards and 851.5 million debit cards in circulation as of August, RBI data shows.
‘Consumers spent more on travel and food this Diwali’Though jewellery spending was flat, banks like Axis Bank saw an increase in the total value of purchases in electronics and travel during the festive season. Axis saw a 100 per cent increase in electronics purchases.