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The deadline to submit takeover bids ends on Tuesday, and the sources told Reuters Jindal had decided against bidding after evaluating the airline's financial statements. "The EoI was largely to check the valuation of the airline and get access to the company's data," said one of the sources. Jindal Power and Go First's resolution professional did not reply to emails seeking comment. The Central Bank of India (CBI.NS), Bank of Baroda (BOB.NS), IDBI Bank (IDBI.NS) and Deutsche Bank (DBKGn.DE) are among the top creditors to the airline. Both bankers said the liquidation of the airline was now the most likely option as there were no serious bidders.

Persons: Francis Mascarenhas, India's, Reuters Jindal, Jindal, Banks, Siddhi Nayak, Sarita Chaganti Singh, Miral Organizations: REUTERS, Rights, India's Jindal Power Ltd, Reuters, Jindal Power, Bankers, Central Bank of India, Bank of Baroda, IDBI Bank, Deutsche Bank, Siddhi, Thomson Locations: Shivaji, Mumbai, India, Rights MUMBAI, Bank, BOB.NS, Delhi

☆ India's Bank of Baroda falls after RBI ban on adding new app customers
▼ + stars: | 2023-10-11 | by ( ) www.reuters.com time to read: +2 min

A woman walks past a signboard of Bank of Baroda outside their branch office in New Delhi, India, June 20, 2023. REUTERS/Anushree Fadnavis/File photo Acquire Licensing RightsBENGALURU, Oct 11 (Reuters) - Shares of Bank of Baroda (BOB.NS) fell nearly 4% on Wednesday, a day after the Reserve Bank of India stopped the state-run lender from adding customers to its mobile app citing "certain material supervisory concerns." Bank of Baroda will be allowed to onboard customers to its bob World app only after rectifying certain deficiencies, the RBI said on Tuesday, without giving any details about the issues. Bob World app has 8.1 million daily transactions, while 43% of time deposits are obtained through the app, the bank had said in its quarterly presentation in August. Shares of Bank of Baroda have underperformed the PSU bank index for the year so far, rising 12% compared to nearly 20% in the index.

Persons: Anushree, Suresh Ganapathy, Macquarie, Bob, Varun Organizations: Bank of Baroda, REUTERS, Rights, Reserve Bank of India, Macquarie, Sethuraman NR, Thomson Locations: New Delhi, India, BOB.NS, Bengaluru

☆ India's Go First airline gets expression of interest from Jindal Power - sources
▼ + stars: | 2023-10-11 | by ( Siddhi Nayak | ) www.reuters.com time to read: +2 min

REUTERS/Adnan Abidi/File Photo Acquire Licensing RightsMUMBAI, Oct 11 (Reuters) - Grounded Indian airline Go First has received an expression of interest (EoI) from Jindal Power Ltd, two banking sources and two people aware of the development told Reuters. "Jindal Power was the sole successful applicant whose expression of interest was accepted by banks," said a banker with a state-run bank that has exposure to Go First. Go First's resolution professional, who conducts the insolvency process, and Jindal Power did not immediately respond to Reuters requests for comment. However, the government amended its insolvency law earlier this month to exclude leased aircraft from assets that can be frozen, to bring India's bankruptcy laws into line with a treaty protecting the rights of foreign lessors. It is unclear whether the amended law would apply to Go First since its insolvency proceedings are still underway.

Persons: Adnan Abidi, Jindal, EoIs, Siddhi Nayak, Sarita Chaganti Singh, Devika Organizations: REUTERS, Rights, Jindal Power Ltd, Reuters, Jindal Power, Go, Central Bank of India, Bank of Baroda, IDBI Bank, Deutsche Bank, Aircraft, Siddhi, Thomson Locations: New Delhi, India, Rights MUMBAI, Bank, BOB.NS, Mumbai

☆ India cenbank calls on more lenders to offer digital rupee - sources
▼ + stars: | 2023-07-12 | by ( Siddhi Nayak | ) www.reuters.com time to read: +2 min

Nearly two dozen central banks across emerging and advanced economies are expected to have digital currencies in circulation by the end of the decade, the Bank for International Settlements (BIS) found in a survey, published on Monday. The RBI aims to reach a target of one million CBDC transactions per day by the end of this year, RBI deputy governor T Rabi Sankar said on Tuesday. There were 1.3 million customers and 0.3 million merchants, who used CBDC as of June 2023, he said. "We are in the advanced stage of submitting a CBDC pilot request to the RBI. The central bank has also asked smaller banks to seek feedback from those currently conducting the pilots, the bankers said.

Persons: T Rabi Sankar, Siddhi Nayak, Sohini Goswami Organizations: Reserve Bank of India, Reuters, Bank for International Settlements, State Bank of India, Bank of Baroda, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, Yes Bank, Siddhi, Thomson Locations: MUMBAI, Bank, BOB.NS

☆ About 80% of Indians choose to deposit withdrawn 2000-rupee notes, boost bank deposits - bankers
▼ + stars: | 2023-06-07 | by ( Siddhi Nayak | ) www.reuters.com time to read: +2 min

MUMBAI, June 7 (Reuters) - About three-fourths of Indians are choosing to deposit the recently withdrawn 2000-rupee notes into bank accounts so far rather than exchanging them for smaller denominations, with the trend likely to boost bank deposits, bankers said. In May, the Reserve Bank of India (RBI) said it would withdraw these high-value notes from circulation and permitted their exchange or deposit until Sept. 30. When announced, the value of these notes in circulation was 3.6 trillion rupees ($43.61 billion), the RBI said. Though the total quantum of notes deposited or exchanged so far is not available, six public and private sector bankers Reuters spoke to said over 80% of the notes received by them have been deposited into accounts. The initial assumption is the overall bank deposit base would increase by at least 1.5 trillion rupees, with SBI contributing 22%-25%, the SBI official said.

Persons: Virat Diwanji, Gaura Sen Gupta, Dipanwita Mazumdar, Siddhi Nayak, Swati Bhat, Sonia Cheema Organizations: Reserve Bank of India, Reuters, State Bank of India, Bank of Baroda, Union Bank of India, Bank of India, Kotak Mahindra Bank, IDFC FIRST Bank, SBI, Siddhi, Thomson Locations: MUMBAI, BOB.NS, India

In granting bankruptcy protection, the National Company Law Tribunal in New Delhi ordered a moratorium on Go First's assets and leases. But bankruptcy protection supersede lessors' repossession requests. Go First's lessors also include SMBC Aviation Capital and CDB Aviation's GY Aviation Leasing. Its voluntary seeking of bankruptcy protection to renegotiate contracts and debt marks a first for an Indian airline, and Chief Executive Officer Kaushik Khona, who was present as the order was read, hailed the tribunal's decision as "historic". The Indian tribunal said the new resolution professional will take "all necessary steps including the execution of the arbitral award".

The cash-strapped airline wants the tribunal to accept its plea and is seeking an interim moratorium to save its assets, a move the lessors oppose. Go First did not immediately respond to a request for comment on the lessors' bid to deregister the planes. Engine failures have cost the airline 108 billion rupees ($1.3 billion) in lost revenue and expenses, it said. Amid the dispute between the lessors and the troubled airline, banks with exposure to it are awaiting the tribunal's decision to decide their next course of action, two people involved in the talks told Reuters. The company owes financial creditors 65.21 billion rupees ($798 million), its bankruptcy filing showed, and had not defaulted on any of those dues by the end of April.

☆ IndiGo shares surge after smaller rival Go First files for bankruptcy
▼ + stars: | 2023-05-03 | by ( ) www.reuters.com time to read: +1 min

BENGALURU, May 3 (Reuters) - Shares of India's largest airline IndiGo (INGL.NS) surged over 8% on Wednesday as smaller rival Go First's bankruptcy filing raised hopes of market share gains and improved yields. Cash-strapped airline Go First filed for bankruptcy on Tuesday, blaming "faulty" Pratt & Whitney engines for the grounding of about half its fleet and taking lenders by surprise. Lenders to Go First, including Central Bank of India (CBI.NS), Bank of Baroda (BOB.NS), IDBI Bank (IDBI.NS) and Axis Bank (AXBK.NS) dropped 1.1% to 6.8% on Wednesday. Go First owes financial creditors 65.21 billion rupees ($798 million), its bankruptcy filing showed. Bombay Burmah Trading (BBRM.NS), which is also owned by Wadia and has given loans to Go First in the form of inter-corporate deposits, slid 10%.

☆ India's Go First Airways owes financial creditors $798 million - filing
▼ + stars: | 2023-05-02 | by ( Arpan Chaturvedi | ) www.reuters.com time to read: +2 min

MUMBAI, May 2 (Reuters) - Indian airline Go First, which filed for bankruptcy on Tuesday, owes financial creditors 65.21 billion Indian rupees ($798 million), its bankruptcy filing showed. "However, considering the present financial situation of the corporate applicant, defaults to financial creditors would be imminent," the filing said. The filing lists Central Bank of India (CBI.NS), Bank of Baroda (BOB.NS), IDBI Bank (IDBI.NS), Axis Bank (AXBK.NS) and Deutsche Bank among Go First's financial creditors. The airline's total liabilities to all creditors stand at 114.63 billion rupees, the filing shows. The company has defaulted on payments to operational creditors, including 12.02 billion rupees to vendors and 26.60 billion rupees to aircraft lessors.

☆ Exclusive: India's Bank of Baroda stops clearing payment for above-cap Russian oil - sources
▼ + stars: | 2023-04-04 | by ( Nidhi Verma | ) www.reuters.com time to read: +4 min

"Bank of Baroda is extremely cautious in settling payments for Russian oil bought (at levels) above the price cap," one of the sources said. After Western sanctions on Moscow for its invasion of Ukraine, Indian refiners have been gorging on discounted Russian oil. Russia has replaced Iraq as the top oil supplier to India in the last few months, data from trade sources showed. It was not clear if Axis Bank had also stopped settling trades for Russian oil sold above the price cap. India does not recognise the Western price cap on Russian oil, a senior oil ministry source said last month.

But the market turmoil led its flagship Adani Enterprises (ADEL.NS) to abandon a $2.5 billion secondary share offering on Wednesday, prompting concerns at lenders. 1 lender, SBI says the bank has about 270 billion rupees ($3.3 billion) in loans to Adani Group. Bank debt forms 38% of the total debt of 2.1 trillion rupees at the top five Adani companies, according to a Jefferies report. Senior executives at six other Indian lenders, with exposure to Adani companies, told Reuters they had also decided to tighten the credit approval process for Adani. India's central bank has asked local banks for details of their exposure to Adani companies, Reuters reported on Thursday, citing government and banking sources.

☆ Rise in Indian corporate lending signals new investment cycle
▼ + stars: | 2022-11-21 | by ( Ira Dugal | ) www.reuters.com time to read: +5 min

Private investment in India was constrained for years by heavy indebtedness of companies and banks and by weak demand. SBI expects its stock of corporate loans to rise by between 14% and 15% this year and by 12% a year on average in 2023 and 2024. read moreAcross India's banking sector, lending has been rising steadily. Muralikrishna, chief general manager for large corporate lending at Bank of Baroda (BOB.NS), India's second-largest state-owned lender. Dixon Technologies (DIXO.NS), an electronics manufacturer with annual revenue of about 150 billion rupees ($1.85 billion), will receive incentives under the scheme for setting up facilities in five sectors, including electronics. Already, October exports were lower than a year earlier, and Nomura economists cautioned in a note this week that India's investment cycles were closely linked to its export cycles.

☆ Indian bank stocks' record rally to continue as balance sheets strengthen
▼ + stars: | 2022-11-10 | by ( Nupur Anand | ) www.reuters.com time to read: +3 min

[1/2] A man checks his mobile phones in front of State Bank of India (SBI) branch in Kolkata, India, February 9, 2018. This comes at a time when credit growth is at a multi-year high and bad loans across lenders have reduced significantly. The brokerage said private and state-owned lenders that remained better placed to grow include ICICI Bank Ltd (ICBK.NS), HDFC Bank Ltd (HDBK.NS), Axis Bank Ltd (AXBK.NS), IndusInd Bank Ltd (INBK.NS), Bank of Baroda Ltd (BOB.NS) and State Bank of India (SBI) (SBI.NS). Credit growth is at a multi-year high, with an uptick both in retail and corporate loans. "One key concern going ahead remains how the rising interest rate scenario will impact credit growth."

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