Page 21 - Il&fs

Govt's rescue of IL&FS to succeed only if lenders take big haircut: Sources

NEW DELHI/MUMBAI (Reuters) - India's move to take control of debt-laden Infrastructure Leasing and Financial Services (IL&FS) will only succeed if lenders agree to take substantial losses, government sources familiar with the discussions told Reuters.

IL&FS crisis: Central Bank unlikely to participate in Rs 45-bn rights issue

State-owned Central Bank of India, one of the key shareholders of debt-ridden IL&FS Ltd, is unlikely to participate in the proposed Rs 4,500 crore rights issue of the company, according to sources. Central Bank of India had 7.67 per cent stake in IL&FS at the end of March 2018. The bank is already saddled with huge non-performing assets and it has been dependent on capital support from the government, sources said. To meet regulatory capital norms, the government infused Rs 323 crore capital in the bank in the last fiscal. Besides, it is expected to get more during the current fiscal. Central Bank of India would have to shell out Rs 345 crore to maintain 7.67 per cent stake in IL&FS. IL&FS group is facing serious liquidity crisis and has defaulted on interest payment on various debt repayments since August 27. It has over Rs 91,000 crore in debt at the consolidated level. The company needs an immediate capital infusion of Rs 3,000 crore and is planning a Rs 4,500-crore

Behind the IL&FS crisis: India hasn't a clue how to pay for infrastructure

The infrastructure projects worth building are those that pay for themselves in the long run

IL&FS: Contagion is off the table but it doesn't mean the saga is over

The government's step alone won't allay all fears concerning non-bank financing companies

Debt-free companies perform better in bellwether market: Analysis

Conditions unlikely to ease soon with global, domestic interest rates on the rise

Blame game begins at IL&FS as ex-independent directors defend their role

An ousted director said that the nominee directors of the shareholders not only did not endorse the suggestions of raising capital, but did not come up with an alternative solution either

IL&FS' lenders to feel heat of defaults in Q2, see dent in capital adequacy

The lenders, especially public sector banks (PSBs) and institutions with exposure (loans and debt) worth Rs 570 billion, to Infrastructure Leasing and Financial Services(IL&FS) will feel the heat of defaults in for the financial year's second quarter, ended September. They might have to set aside additional capital for default grade loans and for mark-to-market (recalculating assets at current values) provisioning for erosion in the value of bonds of IL&FS group entities.PSB executives said loans to group holding company IL&FS and entities might still be treated as "standard". But, the risk weight for loan exposure will rise sharply from 20 per cent (for AAA-rates ones) to over 100 per cent for default (grade 'D'). Given the Rs 130-billion loan exposure to the holding entity, the capital to be set aside for default grade loans will go up by at least Rs 10 bn. This would have a marginal impact on the capital adequacy ratio, varying among lenders, bankers said. Loans will be

IL&FS crisis: India Ratings acted over 2 years after cautioning on ITNL

On Feb 8, it said ITNL's leverage ratio in the financial year 2016-17 improved 7.35 times, but added it was higher than what the agency expected

IL&FS defaults can lead to systemic risks in financial sector, says DEA

The cascading impact of the default by the IL&FS Group on the financial sector would be quite substantial as evidenced from a partial default of some companies

Cautious buyers stall debt-laden IL&FS's bid to sell subsidiaries

ITNL was expected to receive its dues from the NHAI for several completed road projects but the authority had sent these demands for arbitration

Uncertain times

Risk factors dominate market mood

Letter to BS: Govt right in appointing a new board for debt-laden IL&FS

What about the auditors and regulators involved with their myriad operations?

IL&FS-led NBFC crisis may help banks regain corporate credit share: Report

The deepening crisis in the non-baking finance companies space may help commercial banks re-emerge as a primary source of lending for companies, as the former fight for survival under more regulatory glare, says a report. The "genesis" of the crisis at non-banking finance companies (NBFCs) like infra lender IL&FS is the rapid pace of rise in their share in financial intermediation since 2014, when commercial banks began battling NPAs, notes Singaporean brokerage DBS in a report. "In FY19, we see a likelihood that the share of domestic banks will re-emerge as a primary source of funding to the commercial sector, over bond markets and non-bank entities," it says. Banks will achieve this despite as many as 11 state-run lenders are under the prompt corrective action initiated by the Reserve Bank which comes with curbs in lending, it says. This will be possible because of rising markets-based borrowing costs, tighter liquidity conditions and the efforts undertaken to ...

Management of crisis-hit IL&FS put up a massive cover-up, alleges ministry

Public money was mismanaged, said MCA petition

IL&FS crisis: India dodges a Lehman moment, but that was the easy part

The commitment alone should be enough for the debt market to treat IL&FS's obligations as implicitly sovereign-backed

IL&FS mess: A three-point surgical strike

Sure, the Reserve Bank has developed a spine suddenly and is talking tough, but not yet on IL&FS

Financial markets turmoil is getting scarier: Thomas Isaac on IL&FS mess

"Are demon managers capable of handling it?"

IL&FS mess: From Uday Kotak to Malini Shankar, meet the new board members

Recently Uday Kotak was in the news for heading a 21-member committee, constituted by Sebi, on corporate governance.

IL&FS has given single-digit returns on equity for at least five years

The clean-up now underway may do well to concentrate on key subsidiaries, a handful of which have contributed to the majority of the losses

Centre 'fully committed' to ensure liquidity support to IL&FS, says FinMin

Turning the group around will require a combination of asset sales and fresh fund infusions by investors and lenders