India Seizes Troubled Lender to Limit Shadow Bank Crisis Fallout

  • Reserve Bank initiates bankruptcy proceedings against Dewan
  • Follows move to apply bankruptcy rules to financial firms
Lock
This article is for subscribers only.

India seized control of a second non-bank lender, stepping up efforts to contain the economic fallout from the nation’s shadow banking crisis.

The Reserve Bank of India removed the management of troubled home-loan provider Dewan Housing Finance Corp. and will initiate bankruptcy proceedings, it said late Wednesday.