An appeal challenging NCLT Mumbai bench's order has been filed before the National Company Law Appellate Tribunal (NCLAT) and is scheduled for hearing on Tuesday.
From an average default rate in collection efficiency at 2-3 per cent in pre-Covid times, non-banking finance companies (NBFCs) are now seeing 6-8 per cent of borrowers missing their payment schedules during the second wave of the pandemic. IIFL Finance has halted fresh disbursements for unsecured loans for micro-businesses & personal loans.
Many fund managers are in the process of setting up new alternative investment funds (AIF) in the Section-3 category that mainly includes hedge funds, private equity and venture capital entities. There is ambiguity on whether a fund manager has to reside inside GIFT City, or how long he or she needs to stay there every year.
Creditors can initiate insolvency proceedings against such persons in the National Company Law Tribunal (NCLT), the court said Friday, upholding a government notification of November 2019. Ambani, Wadhawan, Dhoot and Singal had challenged proceedings against them under the Insolvency and Bankruptcy Code (IBC) to recover loans for which they had given personal guarantees.
Conserving cash is the immediate objective for most microfinance firms now with average collections dwindling to about 65%, making loan disbursements to grassroots borrowers their secondary goal.
The USD 1 billion KSSF is managed by Kotak Investment Advisors, which focuses on alternate assets business, and this funding and resolution of debt is the fund's first bet on the road sector.
Among sectors NBFCs lend to, the industrial sector, particularly micro and small and large industries, were the hardest hit by the pandemic as they posted a decline in credit growth, RBI said in its latest monthly bulletin.
Most non-bank finance companies have been forced to stop door-to-door collections after several payment pick-up agents succumbed to the virus in the past six weeks or so. Despite the Reserve Bank of India allowing the recast of small loans, non-banks say they won’t be able to do much as such proposals require customer consent, involving doorstep visits.
The initiative is being rolled out across Bajaj Finserv and its companies -- Bajaj Finance, Bajaj Allianz Life Insurance, Bajaj Allianz General Insurance, Bajaj Housing Finance, Bajaj Finserv Health, Bajaj Financial Securities, Bajaj Finserv Markets and Bajaj Holdings & Investment. It will be effective retrospectively from April 1, 2020.
The funds will be utilised to procure critical medical supplies, oxygen concentrators, and ICU equipment in Mumbai, Pune, New Delhi and Bengaluru, the Swiss brokerage said in a note on Monday.