Deals
Banks With Assets No One Wants Undercut India’s Debt Recast Plan
- Lenders seek buyers for stakes in at least 22 stressed firms
- Profitability at Indian banks has hit a 17-year low: RBI data
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From deodorant makers to steel mills, Indian banks are getting stuck owning assets they are finding hard to sell under a plan where they exchange soured loans for equity.
India’s banks have converted or are seeking to convert loans to at least 22 companies, amounting to more than 1 trillion rupees ($14.9 billion), into majority stakes since June 2015, data compiled from exchange filings shows. These include Mumbai-based Provogue India Ltd., a retailer that sells ‘Lethal’ jeans and ‘Surreal Lust’ fragrances, and Monnet Ispat & Energy Ltd., a New Delhi-based steel and power producer. None of them have seen a sale or new management so far.