KKR’s NBFC arm chief Krishnan steps down | Mint
Active Stocks
Mon Feb 26 2024 14:08:15
  1. Tata Steel share price
  2. 143.20 -1.58%
  1. Power Grid Corporation Of India share price
  2. 288.85 2.36%
  1. ITC share price
  2. 409.75 -0.45%
  1. HDFC Bank share price
  2. 1,434.10 0.93%
  1. State Bank Of India share price
  2. 761.50 0.28%
Business News/ Companies / People/  KKR’s NBFC arm chief Krishnan steps down
BackBack

KKR’s NBFC arm chief Krishnan steps down

KKR is one of the first global PE firms to set up lending operations in India
  • B.V. Krishnan has stepped down due to personal reasons
  • BV Krishnan, outgoing CEO of KKR India Financial Services. (Photo: Aniruddha Chowdhury/Mint)Premium
    BV Krishnan, outgoing CEO of KKR India Financial Services. (Photo: Aniruddha Chowdhury/Mint)

    BENGALURU : In a top-level rejig at global private equity (PE) fund KKR, B.V. Krishnan, the chief executive officer (CEO) of its non-banking financial company (NBFC) arm has stepped down due to personal reasons. KKR India’s CEO Sanjay Nayar will take over the reins of KKR India Financial Services Pvt. Ltd, said two persons close to the development who did not wish to be identified.

    “Some of the bets in the credit business have not gone down well," said one of the persons cited above.

    KKR is one of the first global PE firms to set up lending operations in India. KKR India Financial Services, a non-deposit taking NBFC, which started operations in October 2009, is engaged in structured funding, promoter financing, acquisition funding, and mezzanine financing. The NBFC has a loan book of 6,000 crore and 50 active loans.

    A KKR India spokesperson confirmed that Krishnan is moving on. “KKR remains committed to the Indian market for the long-term and we continue to recognise the important role KKR India Financial Services plays in supporting the local economy. Through KIFS, we will continue to provide the necessary capital to the home-grown businesses that have difficulty accessing flexible credit to help carry out their business plans," the spokesperson said.

    Rating agency Crisil recently cut the long-term debt instruments and bank facilities of KKR India Financial Services to CRISIL AA/Stable from CRISIL AA+/Stable.

    In a report on 1 October, Crisil cited “deterioration in the standalone credit profile marked by expected pressure on asset quality and its consequent impact on the earnings profile and capitalisation metrics" for the downgrade.

    To be sure, a few of KKR India Financial Services’ loans have floundered recently. These include the likes of debt-ridden packaged foods maker Kwality Dairy, which raised Rs300 crore in debts from the firm. There was also an additional commitment of providing Rs200 crore to it. KKR has now filed an insolvency request against the company. Another firm, Coffee Day Enterprises Ltd is trying to cut down it group debt by selling non-core assets following the death of its promoter V.G. Siddhartha.

    Over the last three fiscal years, KKR India Finance’s loan book has grown at a CAGR (compound annual growth rate) of 35% to 5694 crore, as on March 31, 2019, according to the CRISIL report cited above. The loan book stood at nearly 5878 crores as on June 30, 2019.

    As on June 30, 2019, KKR held nearly 51% stake in KKR India Finance. The remaining stake is held by a global limited partner (LP), and Abu Dhabi Investment Authority (ADIA), who have both infused $100 million each in the NBFC.

    “KKR is committed to the Indian market for the long term and will look at infusing more capital into the NBFC to keep up with the demand," said one of the people cited above.

    Besides KKR India Financial Services, the global PE firm another NBFC is KKR India Asset Finance, which focuses on real estate lending. KKR also manages domestic credit funds and invests in credit deals through its global funds.

    Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

    Catch all the Corporate news and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates & Live Business News.
    More Less
    Published: 24 Oct 2019, 07:06 PM IST
    Next Story footLogo
    Recommended For You
    Switch to the Mint app for fast and personalized news - Get App