Krishna Merchant is Asia credit correspondent at IFR. She covers credit, mainly corporate bonds in India, Indonesia and the Philippines, and also the offshore rupee market, or Masala, bonds for India. She has been with IFR since May 2016.
The Reserve Bank of India has released a new framework for the resolution of stressed assets that gives more flexibility to lenders to resolve bad debt without making it mandatory for them to refer stressed accounts to bankruptcy courts.
Dewan Housing Finance Corp (DHFL) rocked India’s non-bank financing sector again last week when it missed a Rs10bn (US$143m) coupon payment, triggering renewed warnings of a wider liquidity crisis.
Indiabulls Housing Finance won a vote of confidence from international investors last week with its first US dollar bond issue, even as fellow non-bank lender Dewan Housing Finance Corp (DHFL) took drastic action to prevent a liquidity crisis.