A logo of IL&FS (Infrastructure Leasing and Financial Services) is seen on a building at its headquarters in Mumbai. Photo: Reuters
The report also says that the bank has asked one of its senior officials in the risk management department to resign over the loan default.
has defaulted in repaying a short-term loan of Rs 10 billion to SIDBI.
At the same time, a subsidiary of IL&FS
too has defaulted in repaying loan worth about Rs 5 billion to the development financial institution, the report said.
However, since SIDBI
does not really have any security to invoke in its loan to IL&FS
and the bankruptcy code as stated in the IBC does not apply to non-banking financial companies (NBFCs), the moneylife
report further said.
IL&FS is facing liquidity problems and has asked its promoters, led by Life Insurance Corporation, to infuse Rs 45 billion by a rights issue by the end of September. Beside, IL&FS
has sought additional lines of credit worth Rs 35 billion from its promoters for meeting immediate requirements.
IL&FS group has firmed up plans to shed its debt by 37.5 per cent, or by Rs 300 billion, to Rs 500 billion by divesting 25 projects over 12-18 months. The overall debt is expected to come down to Rs 500 billion after the planned divestments.
In August rating agency ICRA had downgraded rating for IL&FS’s long-term loans and debentures. The change in the rating factored in the elevated debt levels owing to the funding commitments towards group ventures. In a statement lst month IL&FS said the board took cognisance of the situation of overleverage. It had arisen as a significant percentage of the group’s liquidity, aggregating to over Rs 160 billion stuck in claims and termination payments.