RBI said that it has fined both KKR India Financial Services and Daimler Financial Services for failing to comply with the 'Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016' issued by it.
The RBI imposed a penalty of Rs 5 lakh each on Daimler Financial Services India and KKR India Financial Services for non-compliance with directions related to 'monitoring of frauds in NBFCs'.
KKR s India NBFC, InCred set for all-stock merger
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Synopsis
KKR will end up owning 33-35% of the entity that will emerge from the merger of KKR India Financial Services and InCred, while InCred and its promoters will own the rest.
Reuters
The KKR India-InCred merger will value KKR India Financial Services (KIFS) at about Rs 6,000 crore, a fourth of its valuation in 2018 when it had plans for a public issue.
KKR & Co. has agreed to an all-stock merger of its India lending unit KKR India Financial Services (KIFS) with InCred, a shadow bank promoted by former Deutsche Bank officials, ending nearly 10 months of negotiations, said people aware of the matter.
Kapil Singhal, former managing director and India Credit head at KKR & Co, has joined private equity firm True North as managing partner of its new credit business. Singhal quit KKR late last year. He was leading KKR s non banking finance arm KKR India Financial Services since February last year. He succeeded B V Krishnan, who quit KKR s credit arm in 2019. In his (Singhal s) partnership with True North, he will lead the efforts in establishing a best in class credit platform, True North said in a LinkedIn post. Singhal joined KKR in October 2019. He used to look after the Edelweiss Special Opportunities Fund before joining KKR India Financial Services.
How KKR’s credit risks came crashing down
The credit unit’s then CEO Sanjay Nayar (now KKR India’s chairman) saw big potential in structured corporate loans, which tend to offer higher interest rates than traditional bank loans but come with fewer creditor protections.
(Photo: Mint)Premium
Anto Antony,
, Bloomberg
A global investment behemoth’s sprint from boom to bust is a cautionary tale about India’s shadow-lending sector.
With a growing number of foreign money managers looking for opportunities to sift through the wreckage of India’s debt markets, the story behind KKR’s troubled bet illustrates what can go wrong