Yet another microfinance company is now looking at debt restructuring. After opting out of CDR early this year, microfinance company BASIX, promoted by Vijay Mahajan, is now having second thoughts on debt restructuring. The company held a meeting with lenders early this week to discuss the way forward, reports CNBC-TV18's Gopika Gopakumar.
The microfinance company held a meeting with bankers on December 5, and requested for additional funding moratorium period for repayment and capital infusion worth around Rs 400 crore.
The rethink on debt restructuring has come after RBI came out with new rules which said that the microfinance companies, which have a 25% exposure to Andhra Pradesh, must achieve 12% capital adequacy by April 2012. This has put pressure on microfinance companies like BASIX to raise additional capital going forward.
Lenders are divided over the proposal of debt restructuring. Lenders believe that they could go ahead with restructuring only if RBI extends this special dispensation, which was given to other microfinance companies earlier this year. This dispensation allows these bankers to classify the loans as standard even after debt restructuring.
However, the company is looking to restructure debt worth around Rs 400 crore out of the total debt of Rs 800 crore. Major lenders to the company include SIDBI, ICICI and HDFC. Also watch the accompanying video...
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