Friday, May 7

IL&FS: Central Bank of India’s exposure less than 2 pc of IL&FS Group’s aggregate external debt


MUMBAI: State-owned Central Bank of India Wednesday clarified that its exposure in IL&FS group is less than 2 per cent of aggregate external debt of the cash-strapped entity.

The Infrastructure Leasing and Financial Services (IL&FS) crisis has sparked off concerns of liquidity crunch in financial markets.

In a stock exchange filing, Central Bank of India further clarified that various banks have granted loans/credit facilities to three group companies of IL&FS amounting to Rs 14,500 crore for which the Central Bank is holding assets of those firms as securities, in the capacity of security trustee on behalf of the lenders.

“…Central Bank of India is having exposure in IL&FS and its subsidiaries/SPVs by way of credit and investment which is less than 2 per cent of IL & FS Group’s aggregate external debt,” the bank said in the filing.

It further said that assets of IL&FS are also charged in favour of Central Bank in the capacity of Debenture Trustee for various series of debentures issued by the cash-strapped firm in the past.

“As on date, all these debentures were redeemed but securities are still appearing in the name of Central Bank of India on MCA website as the company is yet to file satisfaction of charges with ROC (Registrar of Companies),” it said.

On October 1, the government superseded the board of IL&FS and appointed a six-member board with Uday Kotak as the non-executive chairman.

The IL&FS and its subsidiaries have defaulted on several debt repayments recently due to liquidity crisis. It needs an immediate capital infusion of Rs 3,000 crore and is also planning a Rs 4,500-crore rights issue.

The company as of March 2018 owed over Rs 91,000 crore to banks and other creditors.


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