Tag: EoI

RBI may screen bidders for bank privatisation at EoI stage, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


The government is set to start consultations with the Reserve Bank of India (RBI) to devise a new security clearance framework for screening potential bidders of public sector banks (PSBs), according to a report.

As potential buyers of IDBI Bank and two other PSBs will need to meet the RBI’s fit and proper criteria, the government is planning to bring the central bank on board to vet candidates in the first step itself.

The RBI will screen bidders as early as when expression of interest is placed and only then the process will move forward.

The RBI considers several factors, including the applicant’s integrity, reputation and track record in financial matters and compliance with tax laws, ongoing proceedings of serious disciplinary or criminal nature, financial misconduct for its ‘fit and proper’ tag.

On the radar

The NITI Aayog, which has been entrusted with the job of identifyng suitable candidates for the privatisation, has recommended names to a high-level panel headed by Cabinet Secretary Rajiv Gauba.

Central Bank of India, Indian Overseas Bank, Bank of Maharashtra and Bank of India are some of the names that may be considered for privatisation by the Core Group of Secretaries on Disinvestment.

The other members of the high-level panel are Economic Affairs Secretary, Revenue Secretary, Expenditure Secretary, Corporate Affairs Secretary, Secretary Legal Affairs, Secretary Department of Public Enterprises, Secretary Department of Investment and Public Asset Management (DIPAM) and the Secretary of administrative department.

Following clearance from the Core Group of Secretaries, the finalised names will go to the Alternative Mechanism (AM) for its approval and eventually to the Cabinet headed by Prime Minister Narendra Modi for the final nod.

IDBI Bank

The government has invited bids from transaction advisors and legal firms for assisting in the strategic sale of IDBI Bank.

The Union Cabinet had in May given in-principle approval for IDBI Bank’s strategic disinvestment along with transfer of management control.

The central government and LIC together own more than 94 per cent equity of IDBI Bank. LIC, currently having management control, has 49.24 per cent stake, while the government holds 45.48 per cent. Non-promoter shareholding stands at 5.29 per cent.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , ,

YES Bank scouts for investors to set up ARC

Banking & Finance

[ad_1]

Read More/Less


Private sector lender YES Bank is moving ahead with plans to set up its own asset reconstruction company (ARC). It has floated an expression of interest (EoI) for potential investors to partner with it in the venture.

“The prospective investor will be the lead partner or sponsor of the ARC, with the bank as the other significant partner/sponsor, for conducting the business of asset reconstruction…,” YES Bank said in a newspaper advertisement.

According to the advertisement, the prospective investor or their sponsors should have minimum assets under management of $5 billion in the immediately preceding completed financial year.

It should also have demonstrated ability to commit funds for investment or deployment in Indian companies or Indian assets of about $0.5 billion.

Also Read: YES Bank, Indiabulls Housing Finance sign co-lending agreement

The potential investor should also have demonstrated global experience of dealing in stressed asset space and established track record of turn around and resolution of distressed assets and non performing loans in the part.

The proposed investor should also meet the “fit and proper” criteria of the Reserve Bank of India.

It has given time till August 31 to potential investors to submit EoIs.

Ernst and Young is the process advisor to YES Bank.

In a previous interview to BusinessLine, Prashant Kumar, Managing Director and CEO, YES Bank had said that the lender had applied to the RBI for setting up an ARC with a controlling stake.

“The RBI is not comfortable with giving a controlling stake to a bank as it would be a moral hazard. Since they have set up a committee to look at the ARC framework, we will wait for the report and then approach the RBI based on the proposal,” he had said in the interview in May this year.

For the quarter ended June 30, 2021, YES Bank reported a 355 per cent jump in its net profit to ₹206.84 crore. Gross NPAs were at 15.6 per cent of gross advances as on June 30, 2021 from 17.3 per cent a year ago.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

Srei Equipment Finance gets EoI from Makara Cap for ₹2,200-cr investment

Banking & Finance

[ad_1]

Read More/Less


Srei Equipment Finance Ltd (SEFL), a wholly owned subsidiary of Srei Infrastructure Finance Ltd, on Friday said that it has received a term sheet from Makara Capital Partners Pte. Ltd, Singapore, indicating interest for an estimated investment of around ₹2,200 crore.

The investment will be through subscription to equity shares and other securities of the company subject to the terms and conditions in the said term sheet, the company said in a notification to stock exchanges on Friday.

“This is to inform that the Strategic Coordination Committee (SCC) has received a Term Sheet from Makar), Singapore indicating interest for investment of an aggregate amount of ₹2,200 crores by subscription to equity shares and other securities of the company subject to the terms and conditions contained in the said Term Sheet. The SCC chaired by an independent director, will evaluate the said offer and make the recommendation to the Board of the company,” it said.

SEFL had earlier in April this year received an expression of interest (EoI) for capital infusion from Cerberus Global Investments B.V. It had also received expression of interest for up to $250 million (approx ₹1,865 crore) capital infusion from international private equity funds including US-based Arena Investors LP and Singapore’s Makara Capital Partners.

Infusion to provide cushion

The SCC has been running an independent process for investments in SEFL and many large players have evinced interest. The proposed capital infusion, which is being carried out in parallel to the company’s debt realignment plan, is expected to provide cushion against the pandemic induced stress in the Indian financial services space, the company had said.

Ernst & Young is advising the SCC on the fundraising exercise.

Meanwhile, Srei Infrastructure Finance Ltd had, in April this year, appointed KPMG Assurance and Consulting Services LLP and DmKH & Co. as forensic auditors for its proposed debt restructuring plan.

Kolkata-headquartered Srei group has a total debt outstanding of nearly ₹27,000 crore which includes ₹18,000 crore outstanding to as many as 15 lenders including SBI, Axis Bank and UCO Bank among others. The company has been facing cash flows issues in the wake of the Covid-19 pandemic-driven economic stress.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,