Religare Finvest Signs Pact With Lenders For One-Time Settlement

Religare Enterprises Ltd. said its unit Religare Finvest Ltd. signed a pact with all its lenders to clear their outstanding dues under a one-time settlement (OTS) agreement.

The non-bank lender along with its parent company entered into an agreement on 30 December with 16 sixteen secured lenders for full and final settlement of Religare Finvest’s outstanding dues, Religare Enterprises said in a stock exchange announcement.

These lenders are Bank of Baroda, Union Bank of India, Canara Bank, State Bank of India, Punjab National Bank, Bank of India, SIDBI, Central Bank of India, UCO Bank, IDBI Bank, Punjab & Sind Bank, Bank of Maharashtra, South Indian Bank, Karnataka Bank, Karur Vysya Bank and Federal Bank, it added.

The company, which didn’t disclose Religare Finvest’s outstanding dues and the settlement amount, said its subsidiary will ensure compliance to the terms of the OTS agreement.

Religare Finvest owed 5,344 crore rupees ($645.79 million) to 16 lenders and Religare Enterprises had offered 2,320 crore rupees as OTS for the subsidiary’s dues, according to Business Today.

Religare Enterprises said Religare Finvest has been taking necessary corrective measures as advised by the Reserve Bank of India and it will seek removal of the corrective action plan in due course so that it can restart the lending business.

(Note: $1 = 82.7513 Indian rupees)