IL&FS crisis: Lenders ask RBI, Centre for waiver on asset classification

The Indian Banks’ Association (IBA) has asked Reserve Bank of India (RBI) and the government for a six-month exemption on asset classification of loan exposure to the debt-laden IL&FS group, Business Line reported.

Lenders expect their provisioning to balloon as about Rs 50,000 crore of the total Rs 90,000-crore exposure may turn into non-performing assets (NPAs) by the end of 2018.

The move comes ahead of the National Company Law Appellate Tribunal (NCLAT) hearing on December 17 regarding a proposal to extend the 90-day moratorium on loans taken by Infrastructure Leasing and Financial Services (IL&FS) and its subsidiaries.

In October, NCLAT stayed all proceedings by banks or companies against the debt-laden entity and it 348 subsidiaries in any court of law or tribunal, barring the High Court and Supreme Court.

 

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