Batting for Modi
Jim Yong Kim, President, World Bank
Heaping praise on the work done by Prime Minister Narendra Modi for India's development, World Bank Group President Jim Yong Kim said he is a big fan of the Indian Prime Minister. He is "very impressed" with the major push to ambitious programmes like Smart Cities, Swachh Bharat and power reforms. "The World Bank chief also appreciated India's rapid progress in improving the ease of doing business, especially in the area of logistics," the Prime Minister's Office said in a statement. Hailing the developmental efforts of the government, Kim said India has emerged as a "bright spot". Kim also praised RBI Governor Raghuram Rajan and described him as a "great" central bank governor. "He (Rajan) is well respected. I think he has done a great job," he said. India is the largest client of the World Bank Group. The bank has lent around $4.8 billion to India between 2015 and 2016,
Combating Debt
Manoj Gaur, Chairman & CEO, Jaypee group
Facing the heat from lenders, debt-ridden Jaypee Group got some respite with the sale of its 21.2-million tonne per annum (MTPA) cement assets to Aditya Birla Group's company UltraTech Cement for Rs 16,189 crore. "Jaypee Group is determined to reduce its overall debt through its proactive divestment initiative to help the group tide these current turbulent times caused by the economic slowdown in the country," Manoj Gaur, Chairman and CEO of Jaypee Group, said in a statement. Jaiprakash Group has sold its power and cement units to raise funds for reducing its consolidated debt of about Rs 28,000 crore. In June, the group defaulted on loans and other payments worth Rs 4,460 crore. On a consolidated basis, it failed to repay Rs 2,905.6 crore in principal amount to banks and another Rs 1,558.93 crore in interest payments. A consortium of lenders led by ICICI Bank had decided to invoke the strategic debt restructuring (SDR) option against the company.
Expanding Footprint
Gautam Adani, Chairman, Adani Group
Gautam Adani's port-to-power conglomerate is planning to foray into financial services as well. The $10-billion Adani Group is set to launch a non-banking finance company (NBFC), Adani Finserv, in partnership with Australian giant Macquarie. It joins a growing list of conglomerates such as Tata, Aditya Birla Group, Bajaj Group and L&T that have branched into financial services. According to some reports, the Ahmedabad-headquartered group is also considering the buyout of Macquarie's in-house NBFC and the discussions are believed to be in the final stages. Macquarie Capital's India head Gaurav Gupta, an investment banker close to Adani, is likely to spearhead the new company.
Moving Up the Ranks
N.S. Vishwanathan, Deputy Governor, RBI
Amid the ongoing search for the replacement for the Reserve Bank of India Governor Raghuram Rajan, the government appointed N.S. Vishwanathan as the new deputy governor. Vishwanathan was earlier the executive director with the central bank and will replace H.R. Khan, who retired recently. He will look after the Department of Banking Regulation, Deposit Insurance and Credit Guarantee Corporation, Financial Stability Unit, Risk Monitoring Department, among other responsibilities. Vishwanathan, 58, joined the RBI in 1981. The central bank currently has four deputy governors.
Smart Moves
K.P. Singh, Chairman, DLF
K.P. Singh and his family are planning to invest Rs 10,000 crore in DLF through purchase of shares in a preferential issue to bring down the company's debt, according to a report published in a business daily. According to the report, the Singh family plans to sell 40 per cent stake in DLF Cyber City Developers Ltd. (DCCDL) for Rs 12,000-13,000 crore and will use the money to 'wipe out' the parent company's debt. Separately, DLF also plans to raise about Rs 3,000 crore from institutional investors in order to ensure that the promoters' stake doesn't breach the 75 per cent threshold after the purchase of the preferential shares. The company has a net debt of around Rs 22,000 crore and two-thirds of it is attributed to the residential business. compiled by satyam sharma