RBL Bank (formerly Ratnakar Bank) has received a capital infusion of Rs.1,680 cr. ($262 million) by selling over 32 million shares at Rs.515 apiece on a preferential basis to marquee investors led by CDC Group. In September last year, RBL Bank Ltd had raised Rs.330 cr. (close to $50 million) from CDC.
DeTect Technologies, an IoT tech startup from IIT Madras, has raised funding from IIM Ahmedabad’s CIIE, Axilor Ventures and angel network Keiretsu Forum. Around 15 investors on the Keiretsu network invested in the company. The company will use the funding on R&D and expansion to cater to international clients.
Delhi-based microfinance firm Satin Creditcare Network is raising around Rs.35 cr. ($5.5 million) from non-banking financial company Capital First Ltd. According to a stock market disclosure, it will allot 1.23 million optionally convertible redeemable preference shares at Rs.284.53 apiece to Capital First.
Homegrown messaging and social media technology company Hike Messenger has acquired Bengaluru-based tech startup Creo for an undisclosed amount. In the past, Creo has launched hardware products that includes streaming media dongles and smartphones. The Creo team will begin work on a developer platform to enable third party developers to build services on the Hike platform.
Finance minister Arun Jaitley introduced the Banking Regulation (Amendment) Bill, 2017 in Rajya Sabha. The bill seeks to amend the Banking Regulation Act, 1949 and replace the Banking Regulation (Amendment) Ordinance, 2017, which was promulgated on 4 May. It gives powers to the Reserve Bank of India (RBI) to ask any bank to initiate insolvency proceedings and give directions for resolution of stressed assets. He specified that apart from the introduction of insolvency and bankruptcy code, the government has amended the laws for debt recovery tribunal and allowed 100% foreign direct investment (FDI) in asset reconstruction companies. Steel, infrastructure and power are among the sectors where the bulk of an estimated Rs.10 trillion of stressed assets have piled up, choking the banking system. In June, central bank internal advisory committee identified 12 large stressed cases, accounting for a quarter of India’s total gross non-performing assets (NPAs), for proceedings under the insolvency and bankruptcy code. Subsequently, the central bank advised banks to set aside 50% provisioning against secured exposure and 100% against unsecured exposure in all cases referred for bankruptcy.