(Reuters) – The Reserve Bank of India (RBI) said on Monday it has superseded the board of Aviom India Housing Finance due to governance concerns and defaults in meeting payment obligations.
The central bank will start a resolution process of the housing finance company under the Insolvency and Bankruptcy rules, the RBI said.
Ram Kumar, the former chief general manager of state-run Punjab National Bank, has been appointed as the administrator for the housing finance company.
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.
CRISIL in November downgraded its long-term rating on the bank facilities and non-convertible debentures of Aviom India Housing Finance due to liquidity issues and expected delays in interest payments.
(Reporting by Chris Thomas in Bengaluru; Editing by Sonia Cheema)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibility for its content.