India banks' move to sell converted equity stalls

Mumbai

FROM deodorant makers to steel mills, Indian banks are getting stuck owning assets they are finding hard to sell under a plan where they exchange soured loans for equity.

India's banks have converted or are seeking to convert loans to at least 22 companies, amounting to more than one trillion rupees (S$20 billion), into majority stakes since June 2015, data compiled from exchange filings shows. These include Mumbai-based Provogue India Ltd, a retailer that sells "Lethal" jeans and "Surreal Lust" fragrances, and Monnet Ispat & Energy Ltd, a New Delhi-based steel and power producer. None of them has seen a sale or new management so far.