AGS Transact, a company that manages cash services for over 32,000 ATMs, is facing serious financial troubles. It has defaulted on loan repayments, including those of its subsidiary, Securevalue India Ltd (SVIL). The company handles cash replenishment of ₹1,933 crore every day but has been struggling with liquidity issues in recent months.
This financial stress is causing problems for several banks that rely on AGS for ATM cash management. As a result, ATM services of major banks, including ICICI Bank, YES Bank, Axis Bank, State Bank of India (SBI), Punjab National Bank, Federal Bank, Dhanlaxmi Bank, Utkarsh Small Finance Bank, and Bank of Maharashtra, have been disrupted. YES Bank has even issued a notice on its website informing customers about ATM unavailability in certain locations.
To prevent further disruptions, some banks are now looking for alternative cash management service providers. Shifting operations to other companies could help minimize inconvenience for customers.
The financial strain has also led to a credit rating downgrade for AGS Transact. Domestic rating agencies have classified the company’s long-term bank loans as ‘D’ due to delays in debt servicing. AGS has missed interest and loan repayments that were due in December 2024 and January 2025.
The company’s financial troubles stem from delays in collecting payments, which have worsened its liquidity situation over the past few months. This has also affected AGS’s ability to meet service agreements with its banking partners.
Additionally, rating agencies have pointed out that several financial institutions, including IndusInd Bank, IDFC First Bank, Aditya Birla Finance, Bandhan Bank, and Bajaj Finance, have exposure to AGS, making the situation more concerning.
AGS has acknowledged the challenges and claims to be working on solutions to restore confidence and resolve its financial difficulties.