RBI supersedes boards of 2 Srei companies; insolvency process to begin soon

Ex-BoB official named administrator of the companies

The Reserve Bank of India (RBI) on Monday superseded the boards of Srei Infrastructure Finance and Srei Equipment Finance, which will be taken for insolvency proceedings owing to governance concern and payment defaults by them.

This is the second instance of the RBI superseding a finance firm’s board. Earlier, it had taken such action in the case of mortgage lender DHFL, which is now after successful resolution under the wing of Piramal Enterprises.

According to estimates, banks have about a Rs 28,000-crore exposure to Srei and bond holders another Rs 18,000 crore. Analysts expect a steep haircut as part of