RBI asks banks to treat crisis-hit IL&FS loans as non-performing assets

The Reserve Bank of India (RBI) has declined a request by some lenders to the Infrastructure Leasing & Financial Services (IL&FS) group to allow them a standstill arrangement for six months for their loans.

Banking sources said some lenders, who are to close accounts for the third quarter of FY19 early, had sought this arrangement. The plea, if accepted, would have saved them from making huge provisions, and protect their balance sheet. 

The non-payment of dues beyond 90 days would force the banks to treat their exposure as a non-performing assets.