Following the National Company Law Appellate Tribunal’s (NCLAT) decision to allow banks to declare non-performing assets of Infrastructure Leasing & Financial Services Limited (IL&FS) and its group entities, the Reserve Bank of India (RBI) has now withdrawn its circular that mandated to disclose bad loans of the IL&FS group in its notes of accounts.
Last month, RBI had asked banks and financial institutions to disclose the NPA from their exposure to the troubled infrastructure conglomerate and its group entities in notes to accounts of their fourth quarter results.