Explained: How a problem turned into crisis for Srei Infrastructure Finance

But those in the know say that trouble at Srei had been brewing for a while now

Srei Infrastructure Finance chairman Hemant Kanoria had said in his communique to shareholders that even though the pandemic was a once-in-a-century crisis, he was confident of protecting business and reorganising operations in a manner beneficial to all stakeholders.

The message titled ‘Riding out the Storm’ was part of the company’s annual report for FY20-21. But on Monday, the hope appeared to be fading as the Reserve Bank of India su­perseded the boards of Srei In­fra­structure Finance and Srei Equipment Finance. The apex bank said they will be taken for insolvency proceedings.

Srei said it was “shocked” by the RBI move