1. SBI to Sell Rs 230 Cr NPAs With up to 79% Haircut and More
The State Bank of India (SBI) on Tuesday put on sale four non-performing assets (NPAs) worth Rs 230 crore on a 100 percent cash basis, with reserve prices implying haircuts of up to 79 percent for the accounts.
The four assets are Lovely International and Lovely Enterprises (Rs 95 crore), Abhijeet Ferrotech (Rs 89 crore), Trichy Tanjavur Expressway (Rs 24 crore) and Madurai Tuticorin Expressway (Rs 22 crore). The reserve prices for the four accounts suggest that the haircuts SBI is prepared to take stand at 79 percent, 63 percent, 48 percent and 43 percent respectively.
(Source: Financial Express)
2. RBI Extends RTGS Timing From 4.30 pm to 6 pm
Timings for fund transfer through RTGS have been extended by one-and-a-half hours to 1800 hrs for the general public from 1 June, the Reserve Bank of India said Tuesday.
Under Real Time Gross Settlement (RTGS) System, there is a continuous and real-time settlement of fund-transfers, individually on a transaction by transaction basis (without netting).
The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is Rs 2 lakh with no upper or maximum ceiling.
“It has been decided to extend the timings for customer transactions (initial cut-off) in RTGS from 4:30 pm to 6:00 pm,” the RBI said in a notification.
(Source: Financial Express)
3. After Modi’s Win, FPIs Invest Nearly $400 M in Debt
Foreign portfolio investors (FPIs) poured in nearly 400 million dollars into Indian bond markets two days after the Narendra Modi-led BJP government won a majority in the Lok Sabha elections, signalling a positive sentiment.
Global funds invested 216.3 million dollars last Friday, a day after the election results were announced. It was the highest single-day inflow in the past two months. On Monday they invested 156 million dollars. In May so far,they have bought 142 million dollars worth of debt on the back of an outflow of 1.5 billion dollars in April.
(Source: Financial Express)
4. Adani Offers Lenders Rs 500 Cr Upfront in Fresh Bid for Jaypee Infratech
The Adani group has again entered the race for debt-ridden Jaypee Infratech by making a non-binding offer of Rs 500 crore as upfront payment to lenders, employees and operational creditors.
The committee of creditors (CoC), scheduled to meet on May 30 to consider NBCC (India)’s offer, will also consider the Adani group’s fresh offer.
The Adani group has additionally offered 1,000 acres to lenders and Rs 1,700 crore to construct houses for home owners. Of the Rs 500 crore, lenders will receive Rs 23 crore, while the rest of the money will go to the employees and operational creditors. The Adani offer, if accepted by the lenders, would entail a huge haircut on Jaypee Infratech’s Rs 8,000-crore debt.
(Source: Business Standard)
5. Airtel Africa Plans to List on LSE, May Use Proceeds to Cut $2 Bn Debt
Bharti Airtel on Tuesday said its Africa unit (Airtel Africa) planned an initial public offering (IPO) and list on the London Stock Exchange, and that might fetch the company close to 1 billion dollars.
The company announced its plans for an IPO of its Africa unit last year. It is learnt that the company plans to sell 25 percent of the new shares of Airtel Africa in the proposed IPO and is looking to trade on the main market of the London Stock Exchange, using its premium listing segment.
(Source: Business Standard)
6. Combined Debt of State-Run Omcs Hits Five-Year High of Rs 1.62 Trillion
The combined consolidated borrowing of oil-marketing majors Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL) touched a five-year high of Rs 1.62 trillion at the end of March 2019, up 30 per cent from Rs 1.25 trillion a year ago.
IndianOil’s total debt stood at Rs 92,712 crore as of FY19-end, followed by Rs 42,915 crore of BPCL and Rs 26,036 crore of HPCL. The three companies together added Rs 36,402 crore to the debt pile, according to the Capitaline data.
(Source: Business Standard)
7. Jet Lenders Hit a Recovery Roadblock Abroad
A plan by domestic lenders to take control of six aircraft owned by Jet Airways (India) Ltd has run into rough weather after a Dutch court ordered bankruptcy proceedings against the grounded airline last week, two people with direct knowledge of the matter said.
The lenders to Jet Airways, led by State Bank of India (SBI), were in talks to buy out a 30 million dollars loan taken from US Exim Bank for which the six Boeing aircraft were given as collateral, the people cited above said on condition of anonymity.
“The lenders expected to recover at least 200 million dollars of Jet’s unpaid loans by acquiring the aircraft, each roughly valued between 40 million dollars and 60 million dollars and selling them to a third party if Jet fails to revive," said one of the two people cited earlier.
(Source: Livemint)
8. Vikram Bakshi Gets 4 Weeks to Settle Hudco Dispute
The National Company Law Appellate Tribunal (NCLAT) on Tuesday directed Vikram Bakshi, the former McDonald’s partner for north and east India, to settle the dispute with state-owned Housing and Urban Development Corp. Ltd (Hudco) within four weeks.
Bakshi is still to repay the Rs 195 crore, which includes unpaid principal, interest and penalties, Hudco had lent to Ascot Hotels and Resorts owned by Bakshi.
The development comes just weeks after McDonald’s and Bakshi had agreed to an out-of-court settlement to resolve the six-year-long legal dispute. However, an intervention by Hudco led to a delay in withdrawal of cases by both parties, as part of the settlement process.
(Source: Livemint)
9. Ex-Google, Amazon Employee, Appointed New CTO of Walmart
Walmart on Tuesday said it has appointed Suresh Kumar, an IIT Madras graduate and former Google executive, as chief technology officer and chief development officer.He holds a Bachelor of Technology from the Indian Institute of Technology, Madras and a PhD in Engineering from Princeton University.
His appointment comes as Walmart is undertaking major investments in its e-commerce business to compete more effectively with Amazon.
Suresh Kumar will directly report to the Walmart's Chief Executive Doug McMillon.“The technology of today and tomorrow enables us to serve our customers and associates in ways that weren’t previously possible. We want to take full advantage of those opportunities," said McMillon.
(Source: Livemint)
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