RBI supersedes boards of Srei Infra Finance, Srei Equipment; to seek resolution under IBC

MUMBAI: Reserve Bank of India on Monday superseded the board of directors of Kolkata-based Srei Infrastructure Finance and Srei Equipment Finance and said that it will initiate insolvency proceedings with the National Company Law Tribunal (NCLT). The central bank has cited governance concerns and defaults by the company and appointed Rajneesh Sharma, former chief general manager, Bank of Baroda as an administrator of the company.

Srei is the second finance company against which the central bank has initiated insolvency proceedings after DHFL.

The central bank action comes in the wake of a consortium of lenders led by UCO Bank classifying the group’s loans as non-performing assets.