Jan 27 (Reuters) – The RBI (Reserve Bank of India) said on Monday it has superseded the board of Aviom India Housing Finance due to governance concerns and payment defaults and plans to start bankruptcy proceedings against the company.
The RBI has appointed Ram Kumar, the former chief general manager of state-run Punjab National Bank as the administrator for the housing finance company, the bank said.
It did not specify the nature of the governance concerns.
An email sent to Aviom’s grievance redressal team did not elicit an immediate response. A media contact for the company was not immediately available.
Aviom India Housing Finance caters to low-income households in semi-urban areas and provides loans to women borrowers who do not have any formal income documentation.
The company provides loans for home extensions, home refurbishments and loans against property, according to its website. Its borrowers are self-employed or salaried individuals in informal sectors.
Sabre Partners and investment firm Nuveen are among Aviom’s equity investors.
Aviom’s total debt-to-asset ratio was at 67% as on Dec. 31, 2023, according to its latest financial records.
Its total outstanding bonds stood at 620 million rupees ($7.2 million) and its bank facilities were at 2.25 billion rupees, rating agency CRISIL said in a note in November, while flagging liquidity issues and expected delays in interest payments.
Despite attempts to engage with the company, CRISIL had failed to receive any relevant information, including the liquidity profile of the company, it said.
CRISIL also downgraded Aviom’s ratings on the bank facilities and bonds amid “non-cooperation” by the company, it had said.
($1 = 86.2980 Indian rupees)
