Page 23 - Il&fs

Crisis-hit IL&FS can raise Rs 700 billion by selling assets, says LIC

LIC also says it is open to raising stake in the firm

IL&FS crisis: Govt to take action to avoid undue impact on system

The government is monitoring the situation of debt-ridden IL&FS and would take appropriate action to ensure that there is no undue impact on the financial system, Economic Affairs Secretary S C Garg said Friday. Debt defaults by certain group entities of diversified IL&FS has triggered fears of liquidity crisis in the financial markets and the RBI has been taking steps to improve the overall cash situation. Amid persisting concerns in the markets, the Finance Ministry Friday held a meeting with key shareholders of IL&FS -- LIC, SBI and Central Bank of India -- to discuss the current situation. Stating that the government is monitoring the situation of IL&FS, Garg said it is a large company within the infrastructure space and there is a lot of connection with the government departments as it has executed a lot of PPP (Public Private Partnership) projects. "Therefore it is an important, significant entity. The government would take appropriate measures to see that there

IL&FS Securities Services clears LIC Mutual Fund's dues of Rs 3 bn

LIC Mutual Fund said Friday that IL&FS Securities Services, an arm of the crippled infra lender, has cleared its dues worth Rs 300 crore. Beginning August 27, the diversified IL&FS group, which is facing cash crunch has been defaulting on payments, with Thursday alone it telling regulators that it had defaulted on seven payments. "We would like to confirm that we have received all our interest payments and/or maturity proceeds from IL&FS group entity, with the final payment of Rs 300 crore being paid Friday," LIC MF said in a statement. The development at the group, which owes more than Rs 91,000 crore to lenders, have led to a market plunge. The market indices closed Friday with its worst monthly losses since February 2016. Both these incidents along with advance tax outflows, rupee depreciation, GST related outflows created liquidity deficit in the market to the tune of Rs 1.5 trillion, following which RBI Thursday relaxed liquidity coverage ratio of banks

IL&FS crisis: Experts want RBI to cancel licences of 1,500 smaller NBFCs

Better capitalised and more conservatively run finance firms are likely to swallow up an increasing number of smaller rivals, the experts said

IL&FS default: Did rating agencies' failure to connect dots lead to crisis?

In the case of IL&FS subsidiary IETSL, for instance, rating agencies did not ask why the promoters' line of credit was not invoked despite the dues being so delayed

Debt-ridden IL&FS scraps dividend to its shareholders ahead of AGM

IL&FS now plans to raise equity capital of Rs 45 billion

How Indian credit rating agencies missed an epic fail at IL&FS Group

Indian credit rating industry has come under scrutiny after the firms that assessed IL&FS, including the local partners of Moody's Investors Service, failed to see the financial troubles brewing

IL&FS crisis: India's busted Macquarie clone must go under the knife

The institution that made a business of exploiting India's desperation for funds, is now seeking to protect its assets from unpaid creditors trying to push it into bankruptcy

Rating agencies had red-flagged excessive leverage of IL&FS and its arms

The agencies did not flag the issues in time for investors to avoid losses on account of the default

Crisis-hit IL&FS looks to exit long-term project financing business

Crisis-hit firm to concentrate on management and execution of infrastructure projects

RBI to meet large shareholders of IL&FS on Friday, discuss turnaround plan

The Reserve Bank will meet the large shareholders of Infrastructure Leasing & Finance Services on Friday to discuss a turnaround plan for the crisis-ridden infra major, the central bank sources said. LIC and Orix Corporation of Japan, which have 25.34 and 23.54 per cent stake in the company, respectively, are expected to attend the meeting to which minority shareholders, which include two state-run banks, and HDFC have not been called. "The officials concerned will meet the large shareholders of IL&FS Friday," an RBI source told PTI. Earlier in the day, two banking sources said they have been told that Friday's meeting has been cancelled. "Friday's meeting has been cancelled as the regulator want to know what is the course of action and what is the roadmap that the firm is taking," one of the shareholders, said. The Abu Dhabi Investment Authority, HDFC, Central Bank of India and SBI hold 12.56 per cent, 9.02 per cent, 7.67 per cent and 6.42 per cent, ...

Rapid growth of the shadow banking sector may endanger India's growth story

NBFCs' loan books grew 21.2% in FY18. In comparison, bank loans grew 10.3% over the same period

RBI cancels meeting with IL&FS shareholders, next date not decided yet

The Reserve Bank of India (RBI) has cancelled the Friday's meeting with the shareholders of debt-laden Infrastructure Leasing and Finance Services (IL&FS), according to banking sources. The apex bank had earlier called a meeting with key shareholders of IL&FS, including Life Insurance Corporation of India (LIC) and State Bank of India, after the company and its subsidiaries defaulted on repayments of various debt instruments. "Tomorrow's meeting has been cancelled. As a regulator, they want to know what is the course of action and what is the road map that the firm is taking," a source said. "RBI wants details of the plan for future or corrective action which are to be taken," another source said. The next date for meeting has not been decided yet, the source added. IL&FS's annual general meeting is scheduled for September 29 here. LIC and Orix Corporation of Japan are the largest shareholders of IL&FS with 25.34 and 23.54 per cent stake, respectively, ...

IL&FS withdraws declaration for seeking shareholders' nod for dividend

Informs shareholders that the debenture trustee has denied consent to dividend distribution following its default on NCD interest payment

Sebi seeks details of MFs' investment, exposure in debt-ridden IL&FS group

Regulator to discuss redemption risks, liquidity issues with top fund houses on Friday

Repeat of 2008-type liquidity measure to revive IL&FS unlikely. Read why

IL&FS and its subsidiaries defaulted on their payment obligation on inter-corporate deposits and commercial paper, in late August, triggering a sell-off in NBFC stocks

Poor execution, weak results weigh on listed entities of IL&FS group

The group's borrowing is over Rs 900 billion, with reported losses during 2017-18 more than Rs 20 billion

5 subsidiaries wiped out all FY18 profits of IL&FS, its 200-odd other arms

Subsidiaries involved in these projects had a collective loss of Rs 13.2 bn for FY ending March 2018 or 70 per cent of the consolidated loss for IL&FS of Rs 18.9 bn

Banks to recoup market share as high rates, tighter liquidity hit NBFCs

A steady decline in 10-year government bond yields beginning the second half of 2014 led to a sharp decline in borrowings costs for non-bank lenders

Congress seeks Supreme Court-monitored probe into 'mismanagement' in IL&FS

The Congress on Wednesday accused the Narendra Modi government of bringing India to the "verge of economic collapse" and demanded a Supreme Court-monitored probe into "financial mismanagement" in the Infrastructure Leasing & Financial Services (IL&FS) group, which has over Rs 91,000 crore in debt. Congress spokesperson Manish Tewari claimed the company was on the verge of bankruptcy and warned if that happened it would have a domino effect and "far reaching consequences" on the country's economy. "This could be termed as the 'Lehman Brothers moment of India', as the collapse of Lehman Brothers in United States led to the 'great economic meltdown' of 2008...Something similar is happening in India today," he said, warning that "the Indian economy may plunge into a very deep crises". The Congress leader alleged that the Prime Minister's Office and the Finance Ministry was putting pressure on the Reserve Bank of India (RBI), State Bank of India (SBI), Life Insurance Corporation ...