News digest: Bhushan Steel resolution, AT1 bonds, CSR spending, and more

Corporate resolution: Larsen & Toubro moves NCLT against Bhushan Steel
A corporate tug-of-war has broken loose, with infrastructure major Larsen & Toubro (L&T) moving the National Company Law Tribunal's (NCLT’s) Delhi Bench against the Bhushan Steel resolution process. Tata Steel on Wednesday had announced it had emerged the highest bidder for the Delhi-based steel company, beating Sajjan Jindal-promoted JSW. L&T alleged that Bhushan Steel, undergoing corporate resolution, had defaulted on payment of Rs 9.62 billion for construction of its Angul factory in Odisha. Read more


Investors upset as four banks recall Rs 109-bn additional tier 1 bond
With four banks recalling their additional tier 1 bonds (AT1), issued as quasi-equity under Basel-III regulations, the stage is set for a slow death of these perpetual instruments. To date, Rs 761.14 billion of these bonds have been issued in the local markets, including by private banks and Exim Bank of India. Almost all banks have issued these bonds. Of the 11 banks undergoing prompt corrective action (PCA) of the Reserve Bank of India (RBI), which restricts normal lending activities of banks, nine had raised Rs 202.9 billion through these bonds. Read more