Credit distress: What panelists on Mint India Investment Summit say
2 min read 05 Mar 2020, 12:57 PM ISTIndustry leaders share their thoughts on credit and how to deal with credit distress at the Mint India Investment Summit
PremiumTop business minds will from various backgrounds will come together to discuss the subject of credit in India. The panelists who will discuss 'Credit: Dealing with distress' are:
Kalpesh Kikani, Managing Director and Senior Partner, AION Capital
Vishal Gupta, Senior Vice President SBI Capital Markets
Indranil Ghosh. Managing Director, Cerberus Capital Services
Anurag Das, Managing Director & CEO, International Asset Reconstruction Company
Aniruddha Sen, Partner, Trilegal
Siddharth Suri, Partner, Special Situations Group, KPMG in India
Srini Sriniwasan, Managing Director, Kotak Investment Advisors Ltd
The session will be moderated by Nachiket Naik, Head – Corporate Lending of Arka Fincap Ltd.
Here's what panelists said:
“Opportunity for India to attract capital is high," says Kalpesh Kikani, Managing Director and Senior Partner, AION Capital.
"Working capital availability is still a constraint in India," says Vishal Gupta, Senior Vice President SBI Capital Markets.
"There's still pain left in the system.. some banks are gonna have problems and provisions in March ending if some of these assets are not resolved in time," says Vishal Gupta, Senior Vice President SBI Capital Markets.
"We are currently battling with twin crisis where some of the shadow banks are not doing well and lot of that is coming real estate led distress," says Indranil Ghosh. Managing Director, Cerberus Capital Services.
"Residential real estate development business is just not suited to apply the IBC regulations," says Srini Sriniwasan, Managing Director, Kotak Investment Advisors Ltd.
“In the last couple of years there has been nothing green about the real estate sector," says Siddharth Suri, Partner, Special Situations Group, KPMG in India.
"Banks are not ready to finance working capital," says Vishal Gupta, Senior Vice President SBI Capital Markets.
"Banking system needs to be far more pragmatic," says Indranil Ghosh. Managing Director, Cerberus Capital Services.
"The entire industrial sector has a lot of opportunities," says Anurag Das, Managing Director & CEO, International Asset Reconstruction Company.
"As a new investor, you do not want to spend the next five years of your life dealing with investigative agencies," says Kalpesh Kikani, Managing Director and Senior Partner, AION Capital on credit environment.
"In distress situations, in my personal view, there is actually little need for harmonization (of approach between regulators)... what we need is to move towards de-regulation," says Aniruddha Sen, Partner, Trilegal.
"Dress up a pig as much you want with lipstick but it will still be a pig," says says Srini Sriniwasan, Managing Director, Kotak Investment Advisors Ltd.
"The key ingredient that is missing, in my opinion, is just figuring out is what type of market we are willing to trust," says Anurag Das, Managing Director & CEO, International Asset Reconstruction Company.
"We have to try create a micro market for people who are willing to bring capital and expertise," says Anurag Das, Managing Director & CEO, International Asset Reconstruction Company.
"Distress investors are not different are from equity investors," says Indranil Ghosh, Managing Director, Cerberus Capital Services.
"I see lot of resolution outside of IBC going forward," says Vishal Gupta, Senior Vice President SBI Capital Markets.
"Incentivizing the banks for trading loans should be done going forward," says Anurag Das, Managing Director & CEO, International Asset Reconstruction Company.
