IL&FS Financial Services Ltd. (IFIN) — the non-banking finance arm of infrastructure conglomerate IL&FS — reported a gross non-performing asset (NPA) ratio of 90% as at end December, IL&FS’ new management said.
“The gross NPAs were around 5% in March 2018,” said Uday Kotak, who was appointed as the non-executive chairman of IL&FS.
He was briefing the media as the new management completed six months. It is unusual for any lender to report 90% gross NPAs and it is probably for the first time, in recent times, that a lender had reported such a delinquency.
IFIN’s total exposure as on March 31, 2019 was ₹18,805 crore, of which external exposure was ₹10,656 crore and exposure to the group, ₹6,949 crore. About ₹1,300 crore is categorised as ‘other assets.’
The board of IL&FS was restructured with Vineet Nayyar as executive vice-chairman and C.S. Rajan the managing director.
Rest of the new board comprises Bijay Kumar as deputy managing director and G.C. Chaturvedi, Nand Kishore, Malini Shankar and N. Srinivasan as non-executive directors. The troubled group has a debt of about ₹90,000 crore of which bank loans are 50-55%. While the new management had initiated several steps to monetise the assets of the group companies, it declined to share any projections or timeline on the recoveries. “We are not saying that any of the creditors will be compromised,” said N. Srinivasan.