Page 6 - Debt

LIC in discussion with RBI for access to debt data via CRILIC: Mohanty

Life Insurance Corporation (LIC) chairman Siddhartha Mohanty on Thursday said the state-owned insurer is "in active discussion" with the Reserve Bank of India and confident of getting access to central bank's debt database CRILIC. "It's an irony that despite being the largest debt investor, we don't have access to debt or the national debt database CRILIC. We are in active discussion with the regulator for the same and are confident of getting that access," Mohanty said at an economic conclave organised by SBI here. Central Repository of Information on Large Credits (CRILICS) is an RBI-run database of credit exposures of various lenders including those towards non-performing borrowers. Most of LIC's debt investments are in central as well as state governments' debt securities. The LIC chairman said that not having access to CRILIC data is a risk for the insurer as its liabilities are long-term while assets are short-term. The lack of access to CRILICS tilts the balance negatively

India, China follow contrasting external lending strategies: World Bank

Escalating debt vulnerabilities in many low or middle-income countries and overlapping crises are forcing an increasing number of countries to seek debt restructuring from external creditors

Telangana's total debt pegged at Rs 6.71 trillion by end of FY 24

Telangana will have an outstanding debt of Rs 6,71,757 crore, including non-guaranteed loans of corporations or institutions by the end of FY 24 against Rs Rs 72,658 crore in 2014, the state government said. Telangana State Finances-White Paper was tabled by the government in the Legislative Assembly. The debt servicing burden of monies which are borrowed on the budget and off-budget has increased enormously and is consuming 34 per cent of the state's revenue receipts while the salaries and pensions of employees consume another 35 per cent of the state revenue receipts, a state government document said on Wednesday. The total debt on the books of the State, guaranteed and serviced by the State, guaranteed but not serviced by the State, and not guaranteed and serviced by the institutions is Rs 6,71,757 crores,' it said. Further, as per budget estimates for FY 2023-24, the debt under FRBM (Fiscal Responsibility and Budget Management Act, 2003) is estimated to increase to Rs. 3,89,673

Jai Balaji raises Rs 559 cr from Tata Capital FinServ to refinance debt

Jai Balaji was on the RBI's second list of non-performing assets (NPAs) in 2017-18 mandated for resolution under the Insolvency and Bankruptcy Code

S&P downgrades Vedanta Resources to 'CC' on potential bond extensions

The ratings remain on CreditWatch with negative implications, where they were first placed on September 29, 2023

Indian cos' rupee bond issuance at record in 2023 on jumbo debt sales

Indian companies raised around 914 billion rupees ($10.97 billion) through the private placement of bonds in November

Godrej Properties debt up 17% to Rs 6,174 cr to fund land acquisitions

Realty firm Godrej Properties net debt rose 17 per cent in the July-September quarter to Rs 6,174 crore mainly due to fund acquisition of land parcels. According to its investors presentation, the net debt of Mumbai-based Godrej Properties stood at Rs 6,174 crore as on September 30, 2023. Its net debt was Rs 5,298 crore as on June 30, 2023 and Rs 3,649 crore at the end of the last fiscal. Last month, Godrej Properties Executive Chairperson Pirojsha Godrej had said that the net debt has risen because of aggressive land acquisitions done by the company since last April. Most of the land acquisition has been done outright which requires upfront payment, he had said. However, Pirojsha Godrej maintained that the debt position is comfortable as the net debt-equity ratio is 0.65. During the last financial year, Godrej Properties acquired multiple land parcels across various cities to develop housing projects that can generate a revenue of Rs 32,325 crore. In the current fiscal, the comp

FPIs infuse Rs 9,000 crore in equities in Nov, inflow in debt at 6-yr high

After turning net sellers in the past two months, FPIs again made a comeback in the Indian stock markets in November and pumped in Rs 9,000 crore amid fall in US treasury bond yields and the resilience of the domestic market. Additionally, Foreign Portfolio Investors (FPIs) made a net investment of Rs 14,860 crore in the debt market last month, making it the highest level in six years, data with the depositories showed. Going forward, FPI response will be crucially determined by the market trend, which, in turn, will be influenced by the state election results, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said. If the state election results turn out to be favorable for the ruling dispensation, the market will stage a rally, and overseas investors are unlikely to miss that rally by big selling, he added. According to the data, FPIs made a net investment of Rs 9,000 crore in Indian equities in November. This came after FPIs dumped Indian equities worth R

IMF's second tranche finalisation to Sri Lanka in Dec: Nandalal Weerasinghe

The second tranche of the USD 2.9 billion IMF bailout for cash-strapped Sri Lanka would be finalised within the next month, central bank governor Nandalal Weerasinghe said on Friday. The government is expecting around USD 330 million as the second tranche of the USD 2.9 billion 4-year bailout, following the first one that was extended in March under the Extended Fund Facility (EFF) to support Sri Lanka's economic policies and reforms. Sri Lanka was hit by its worst economic crisis in history when the country's foreign exchange reserves fell to a critical low and the public came out on the streets to protest the shortage of fuel, fertilisers and essential commodities. We are making good progress with the first review. We will get the programme approved. What is required for that (is) assurances from bilateral creditors. The official creditor committee would be forthcoming, Governor of the Central Bank of Sri Lanka (CBSL) Weerasinghe told reporters. With that, there will be additiona

JP Associates inks pact with ICICI Bank, to transfer 189 million shares

Currently, JP Associates owes nearly Rs 29,000 crore to key lenders such as State Bank of India (SBI), ICICI Bank, and IDBI

Debt guarantees

Supreme Court has strengthened the IBC framework

GMR Airports to raise upto Rs 50 bn through debentures to retire old debt

In talks to tie-up funding for airport in Andhra Pradesh

SBI raises Rs 10,000 crore via Tier-II bonds at 7.81% coupon rate

Gets over Rs 15,000 crore worth of bids According to bond market sources, SBI raised a debt capital of Rs 3,100 crore through Additional Tier-I bonds (AT1) earlier this financial year

Govt to ensure that debt burden not passed on to future generation: FM

Finance Minister Nirmala Sitharman on Friday said the government is mindful of the fiscal deficit management and will ensure the burden of servicing debt is not passed on to next generation. Addressing the Kautilya Economic Conclave 2023 here, she said the government is looking at the ways in which it can bring down the overall debt. "We are conscious of matters related to macro economic stability of the country and responsibility with which we deal with our fiscal and also the fiscal management and so for every decisions that we take today, we are conscious of what burden is going to leave for the next generations," she said. It is very easy to be profligate and burden the coming generations with the debt that you will be sitting with, she said. "We are conscious of the debt of government of India. Compared to many others, it might not be as high as it is, but even then, we are consciously looking at experiments in different parts of the world," she said. She said the government

Domestic mutual funds roll out global debt funds amid rising yields

These higher yields make them the right fit for certain use cases. Investment advisors say the product can be looked at when saving for overseas goals

China tells banks to roll over local government debts as risks mount

Local government debt reached 92 trillion yuan ($12.58 trillion), or 76% of the country's economic output in 2022, up from 62.2% in 2019

Signature Global cuts net debt by 66% in last six months to Rs 370 crore

Realty firm Signature Global's net debt declined 66 per cent to Rs 369.96 crore at the end of the September quarter from Rs 1,093.89 crore at the end of last fiscal year. "Our net debt reduced to Rs 369.96 crore at the end of HI, FY24 from Rs 1,093.89 crore at the end of FY23," Gurugram-based Signature Global said in its latest operational update submitted on stock exchanges. Last month, Signature Global successfully launched its Initial Public Offering (IPO) to raise Rs 730 crore. The public issue, comprising a fresh issue of shares worth Rs 603 crore and an Offer For Sale (OFS) component of Rs 127 crore, was subscribed 11.88 times. "We have been able to reduce our net debt significantly in the second quarter following funds raised through initial public offer (IPO)," Pradeep Kumar Aggarwal, Chairman and Whole-Time Director of Signature Global, said. On operational performance, Signature Global reported a 38 per cent growth in sales bookings at Rs 1,861.39 crore in the first six .

India's debt to GDP ratio to peak at 82.3% in FY25, fall in FY29, says IMF

The IMF's present estimates mark a notable deviation from its April projections

Higher-for-longer rates will keep constricting global economy: World Bank

Both Ajay Banga, the institution's president, and Chief Economist Indermit Gill warned that the fallout from the sudden shift to an era of elevated borrowing costs may be tough

How a debt iceberg might turn resources titan Vedanta into Titanic

A corporate presentation notes the "consistent shareholder returns" from more than $11 billion in dividends over the past decade