Loan Default

The investment bank estimates office and retail property valuations could fall as much as 40% from peak to trough, increasing the risk of defaults

Jaypee Group's flagship firm Jaiprakash Associates has defaulted on loans of Rs 4,059 crore, comprising both the principal and interest amount. In a regulatory filing, Jaiprakash Associates Ltd (JAL) said the company on December 31 defaulted on repayments of principal amount Rs 1,713 crore and interest of Rs 2,346 crore. The loans pertained to various banks and the nature of obligation is fund based working capital, non fund based working capital, term loans and FCCB (foreign currency convertible bonds). In September 2018, ICICI Bank filed an insolvency petition against JAL but the matter is still pending before the Allahabad bench of the National Company Law Tribunal (NCLT). The country's biggest lender SBI had in September this year moved the NCLT against JAL, claiming a total default of Rs 6,893.15 crore as on September 15, 2022. Last month, JAL and its group firms announced the sale of its remaining cement assets to Dalmia Bharat Ltd at an enterprise value of Rs 5,666 crore an

What is the twin balance sheet problem?

In the mid-2000s, infra companies saw robust growth and their shares shot up. But as the loans piled up, banks found themselves in a tight spot. It was a twin balance sheet problem. Let's know more

SBI will auction the account of Maharashtra-based Pioneer Gas and Power next month to recover loan dues of over Rs 180 crore from the company.

A report by Institutional Investor Advisory Services (IiAS) last month says that the company has defaulted on loans to the tune of Rs 3,561 crore as on March 31, 2022

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Debt-ridden Future Enterprises Ltd (FEL) on Friday said it has defaulted on payment of Rs 2,835.65 crore to various banks and lenders.

Religare Enterprises on Tuesday said its debt-ridden subsidiary Religare Finvest Ltd (RFL) has defaulted on an interest payment due on March 28 for the non-convertible debentures (NCDs). The company defaulted on an interest amount of Rs 2.41 crore, Religare Enterprises said in a regulatory filing. As a result, four investors would be deprived of their interest due. It is to be noted that the RBI on March 11 declined the restructuring of RFL with Religare Enterprises continuing as its promoter since debt-ridden NBFC has been declared as "Fraud" exposure by lenders. RFL subsequently filed a writ petition before the Delhi High Court seeking a stay of operation of the aforesaid order besides other reliefs, it said. The Delhi High Court had stayed the impugned communication of the RBI dated February 11, 2022. As advised by RFL lenders, it said, all payments of RFL need prior certification from ASM (Agencies for Specialized Monitoring) appointed by the lenders. "Accordingly, RFL reques

Company has total dues of Rs 9,727 crore, Rs 4,091 crore of them to Indian banks

Retail, lenders stuck with dud shares; promoter stake in Reliance Infra fell to 5% this September end from 48.4% in March 2018. Reliance Infra's stake in Reliance Power fell to 25% from 75%

The bad loan market may get a boost from the fact that Centre may not indulge state-run banks anymore by recapitalising them as in the past

Chinese media outlet Cailianshe reported several bondholders have received interest payments of the three bond tranches that had a total of more than $148 million due last month

A CBI court on Monday granted bail to Ashok Saikia, son of former Assam chief minister Hiteswar Saikia, who was arrested by the central agency in connection with the alleged default of a loan

The ultimate losses to lenders could be limited, given the secured nature of loans

National Housing Bank (NHB) has imposed a penalty of Rs 80,000 on PNB Housing Finance for not complying with loan disbursement norms in 2015.

Loans against property and credit cards are the most affected segments

Default amoubt excludes a recalled borrowing of Rs 241.48 crore, due to non-compliance of certain covenants of the loan agreement

The gross principal amount on which the default has occurred is Rs 350 crore