IL&FS financial arm's GNPAs touch 90% in Dec against 5% in Mar 2018: Board

Company News

The Infrastructure Leasing & Financial Services (IL&FS) board on Wednesday presented a status report on the group’s financials and the asset monetisation plan, six months after the government-appointed panel took over the reins of the company. The board said the asset monetisation plan for the beleaguered infrastructure finance player was in good shape as far as the assets put up for sale were concerned, and that it expected the resolution process to accelerate.

The board also said the financial arm of the group had posted gross non-performing assets (GNPA) of 90 per cent in December 2018 as against 5.3 per cent in March 2018, and the group’s net worth had seen significant erosion. IL&FS Financial Services’ (IFIN’s) GNPA as a percentage of advances would be the highest by any financial institution involved in lending.

“I have heard of double-digit NPAs but 90 per cent GNPA is very unusual by any standards. That's the challenge that we have faced,” said Kotak Mahindra Bank MD & CEO Uday Kotak, who is also non-executive chairman of the IL&FS group.

The total external exposure of IFIN was estimated at Rs 10,656 crore at the end of March 2019, of which its exposure to group companies stood at Rs 6,849 crore. The board said it was exploring all options, including legal process and one-time settlement, to recover the dues.

The net worth of the group, which was around Rs 9,000 crore in March 2018, has reduced sharply. “It is reasonable to assume that there is significant erosion to net worth and in many many cases there could be a significant in negative value," said Kotak.


 At consolidated level, the IL&FS group had an outstanding debt of Rs 99,354 crore at the end of September 2018. About half of this, or Rs 48,470 crore, was in just four holding companies -- ILFS, IFIN, IL&FS Energy Development Co, and IL&FS Transportation Networks (ITNL)...Read More

Parrikar's last rite, full IPL schedule, new Goa govt : Today's top events

Current Affairs

Before you start the day, take a look at the major events in the country that are likely to make headlines today. From Manohar Parrikar's last rites to full IPL schedule, here are some of the most important news events scheduled for today that will be keenly watched.

Muzaffarpur shelter home case: Delhi court to pass order on framing of charges today

A Delhi court is likely to pronounce on Monday its order on framing of charges in the Muzaffarpur shelter home sexual assault case in which 21 accused have been chargesheeted by the CBI.

Several girls were allegedly raped and sexually abused at an NGO-run shelter home in Muzaffarpur, Bihar, and the issue had come to light following a report by the Tata Institute of Social Sciences (TISS).

All the accused have denied the allegations levelled against them by the CBI and said there was not enough evidence to prosecute them.

Blackstone-Embassy to launch India's first REIT on Mar 18 to raise up to Rs 4,750 cr
Global investment company Blackstone and realty firm Embassy will hit the capital market with the country's first real estate investment trust (REIT) to raise up to Rs 4,750 crore, while it has received Rs 876-crore commitment from strategic investors.


 Embassy Office Parks, joint venture of Blackstone and Embassy, has entered into unit subscription agreements with strategic investors to allot them 2,92,08,800 units for Rs 876.3 crore.The REIT issue will open on March 18 with a price band of Rs 299-300 per unit. The issue closes on March 20. Read on...