Uday Kotak-led Infrastructure Leasing and Financial Services (IL&FS) board has warned about banks facing Rs 53,000 crore worth exposure to finance company. Since the total exposure of the banks to the NBFC is nearly 16 percent, it is “critical to financial stability,” The Indian Express reported citing a report on states of affairs at IL&FS said.
The board also cautioned that the “future impact of more defaults in the group, if not addressed in an orderly manner, may be catastrophic for financial stability.”
The borrowing of IL&FS from banks and financial institutions adds to nearly Rs 63,000 crore as per the balance sheet of 2017-2018, the Ministry of Corporate Affairs (MCA) had noted in the Original Petition based on a confidential note dated September 30, 2018 from the Department of Economic Affairs that on a consolidated basis. Read More