In addition, Moody's has downgraded Indiabulls' foreign and local currency senior secured MTN program ratings to (P)B2 from (P)Ba2. The downgrade is driven by Indiabulls' ongoing challenging access to funding.
NEW DELHI/BENGALURU, Oct 11 (Reuters) - India's passenger vehicle sales slumped 23.7% in September, the eleventh straight month of declines, prompting an industry body to flag more job cuts if sales failed to pick up soon. Passenger vehicle sales dropped to 223,317 units in September, the Society of Indian Automobile Manufacturers (SIAM) data showed, while passenger car sales dived 33.4% to 131,281 units. SIAM's data comes as the domestic automobile industry faces a crippling slowdown in demand that has led to production cuts and thousands of job losses.
(Bloomberg) -- Shares of an Indian shadow lender plunged on Thursday after the Reserve Bank of India rebuffed its plan to merge with a bank, blocking a path that may have helped other struggling non-bank financiers get better access to liquidity.Indiabulls Housing Finance Ltd. plunged 19% to the lowest since March 5, 2014, in Mumbai on Thursday after the plan to combine with Lakshmi Vilas Bank Ltd. was rejected. The financier’s dollar bonds also slumped. Lakshmi Vilas, which fell by the daily limit of 5%, didn’t disclose the reason for the regulator’s decision in its filing on Wednesday.Hurt ...
Indian private sector lender Yes Bank is in talks with Microsoft Corp and two other technology companies as it looks to bring in a strategic shareholder as part of a strategy to rake in fresh capital, the Mint newspaper reported on Sunday. The talks began three weeks ago and could see the bank selling as much as 15% through a fresh equity issue, the newspaper reported citing two people aware of the discussions. The bank's chief executive officer, Ravneet Gill, had said last week that the lender was in talks with private equity firms, strategic investors and family offices to raise ...
(Bloomberg) -- Ashish Shah is caught in the middle of India’s latest financial crisis. As chief operating officer of Radius Developers, he’s struggling to fund construction of apartment complexes because of a liquidity crunch in the nation’s bloated shadow-banking sector.“Real estate is a sitting duck,” said Shah. “The timing is very crucial as the slowdown has hit the real estate market quite hard. The industry can’t service interest, new interest, additional interest, because there is no cash flow.”Radius and hundreds of other developers relied on loans from what India calls non-banking ...
(Bloomberg) -- Yes Bank Ltd. Chief Executive Officer Ravneet Gill said he expects to complete raising as much as $1.2 billion “much sooner than the market expects,” after sales of pledged shares this week eliminated an overhang on the lender’s stock.Gill reiterated in an interview on Thursday his target of selling $1 billion to $1.2 billion of new shares to private equity investors, technology companies and family offices. He declined to be more specific on the timing for completing a deal. The stock surged 33%.“Ideally we would like to do this in one shot,” Gill said. “I think every ...
Private-sector lender Yes Bank's Chief Executive Officer Ravneet Gill assured investors on Thursday that the bank remains on solid financial footing, sending its stock as much as 25% higher. The lender's management added they have been trying to conserve capital by reducing wholesale lending, while increasing it to government and small and medium enterprises (SMEs).
Indian lender Yes Bank Ltd said on Wednesday a forced stake sale by a shareholder led to a steep fall in the company's stock in the previous session. The company's shares plunged nearly 23% on Tuesday to its lowest close in over a decade, alongside sharp declines in other private-sector banks, as fraud allegations against a top mortgage lender and a prominent bank spooked investors. Milestone Trusteeship Services Ltd, the trustee for an issue of bonds by Yes Bank promoter Morgan Credits Private Ltd, invoked and sold 100 million shares of the lender pledged by founder Rana Kapoor, according ...
(Bloomberg) -- One of India’s largest private sector lenders slumped by a record in the bond market on Wednesday, as concerns mount over the health of the nation’s finance sector amid a shadow banking crisis.Dollar bonds of Yes Bank Ltd., which has sizable exposure to the cash-strapped shadow lenders, slumped a record 5.5 cents to 80.9 cents on the dollar on Wednesday, the lowest since the bonds were sold in 2018.The bank is at the epicenter of rising stress in India’s credit markets, where shock defaults last year by a major infrastructure lender have led to broader strains at other shadow ...
The head of Indian carmaker Tata Motors has questioned New Delhi’s corporate tax cut saying it is insufficient to pull the country’s auto sector out of its historic rut, underscoring the difficulty the government and industry face in addressing the unprecedented slowdown. The corporate tax cut is “nothing which is going to help us get out of the current situation”, he said.
(Bloomberg) -- Indiabulls Housing Finance Ltd., a major Indian shadow lender that’s caught in the crosshairs of the troubles plaguing the industry, is seeking to bring forward a court hearing on fraud allegations after a record share slump.The development represents an effort to get out ahead of recent headlines that contributed to its share price losing an unprecedented 34% slump on Monday. Shares rebounded 5% on Tuesday.An Indian court and the police moved last week to begin separate investigations to examine allegations of fraud and misappropriation against Indiabulls and Lakshmi Vilas ...
Shares in major Indian banks took a beating on Tuesday, as fraud allegations against a top mortgage lender and a prominent bank sparked fresh worries about the health of India's financial sector. "There is a crisis of confidence and capitulation of sorts by existing shareholders in Indian lenders," said Umesh Mehta, head of research at Samco Securities in Mumbai. An Indian court last week ordered a probe into Indiabulls Housing Finance Ltd on allegations of illegalities, violations and siphoning of funds by its promoters and subsidiaries, according to reports.
Indian stock indexes fell on Monday following a raft of negative news in the banking and real estate sectors, with shares in Indiabulls Housing Finance Ltd falling 34%. Yes Bank Ltd fell 15%, making it the top decliner on both indexes. Shares in Lakshmi Vilas Bank Ltd , which is proposing to merge with Indiabulls, also fell, by nearly 5% after the Reserve Bank of India (RBI) imposed a so-called prompt corrective action on the bank.
(Bloomberg) -- Indiabulls Housing Finance Ltd. suffered the worst decline since its 2013 initial share sale after India’s central bank placed curbs on a lender it plans to acquire, extending Friday’s slide sparked by a court probe into allegations of fraud.The stock crashed as much as 38% before closing 34% lower at 255.9 rupees, the lowest in five years and the worst performance on the MSCI Emerging Markets Index on Monday. The company’s $350m 6.375% notes due 2022 slid to a record low of 80 cents, according to prices compiled by Bloomberg.India’s central bank placed lending restrictions on ...
