BV Krishnan, Chief Executive Officer of KKR India Financial Services Pvt. Ltd (KIFSPL), has stepped down citing personal reasons. KIFS, is the non banking financial services arm of the PE firm KKR in India. As a part of the leadership transition, KKR India’s CEO Sanjay Nayar will be the CEO of KKR India Financial Services.
KKR is one of the first global private equity firms to set up lending operations in India.
KKR India Financial Services Pvt. Ltd., registered with RBI as non-deposit taking non-banking financial company was started in October 2009. It provides structured funding, promoter financing, acquisition funding, and mezzanine financing.
As per a report by Business Standard, sources say that KKR India’s recent loans have not done well, which is reflected in the spike in non-performing assets (NPAs). Its gross NPAs stood at 2 per cent as on June 30, 2019, which was nil in the previous two years. Over the past three years, KIFSPL’ loan book has grown at a compound annual growth rate of 35 per cent, to Rs 5,694 crore, as on March 31, 2019. The loan book stood at nearly Rs 5,878 crore as on June 30, 2019. On this date, KKR held nearly 51 percent stake in KIFS.
Crisil, had recently cut ratings for KIFSPL to CRISIL AA(Stable) from CRISIL AA+(Stable), for band facilities and long-term debt. In a Crisil report earlier this month, the reason for downgrade was mentioned as – “deterioration in the standalone credit profile marked by expected pressure on asset quality and its consequent impact on the earnings profile and capitalisation metrics”.
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