Altico default sends shared funds, banking institutions scurrying for cover

Altico default sends shared funds, banking institutions scurrying for cover

Top Indian loan providers including HDFC Bank, State Bank of India Yes Bank and UAE-based Mashreq Bank had supplied a six-year, Rs loan that is 340-crore Altico.

MUMBAI: Banking institutions and mutual funds scrambled on Thursday to support the fallout associated with the default by Altico Capital, with investor attention embracing non-banking boat loan companies’ liquidity dilemmas regarding the eve regarding the very first anniversary of IL&FS’ bankruptcy.

On Friday, reviews agency Asia reviews & Research cut Altico’s creditworthiness to ‘D’, or category that is‘default’ from A+ earlier in the day. Care, another reviews agency, downgraded the finance company’s debt to below investment grade.

Meanwhile, shared funds such as for example UTI and Reliance Nippon AMC hurried to ring fence the worth of these financial obligation schemes by segregating, or ‘sidepocketing’, Altico’s securities. (more…)

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