SFIO probe shows IFIN's exposure to AAA borrowers dropped to zero by 2017

In its first charge sheet filed against the group, the SFIO found gross violations by the company while doing credit appraisal and monitoring

The Serious Fraud Investigation Office (SFIO) has found that IL&FS Financial Services (IFIN), a subsidiary of crisis-hit Infrastructure Leasing & Financial Services (IL&FS), did not have a single AAA borrower by 2017, even as its exposure to unrated borrowers rose to 25 per cent of the asset book. Since 2017, the company has not given the details with regard to the rating of the credit portfolio, categorisation of the exposure in infrastructure, promoter funding, real estate, corporate loans and others.

There was an overall drop in the quality of the credit portfolio. In FY13-15, the gross exposure to AAA+ to