• Thursday, 25 April 2019

Indian Bank says most of its Rs 1,800-crore loan to IL and FS is 'good'


Nov 09, 2018 (6 months ago) |
Chennai, Nov 9 : Indian Bank, which has lent over Rs 1,800 crore to Infrastructure Leasing and Financial Services Ltd (IL and FS), on Friday said that most of its loans to the crisis-hit company were 'good'.
"The bank's exposure to ILiamp;FS is Rs 1,809 crore. Out of the 10 loan accounts, six are for special purpose vehicles (SPV of ILiamp;FS) whose revenues are ring-fenced with an escrow account," Padmaja Chunduru, Managing Director and CEO, told reporters here.

She said that one account had turned bad three years ago and that the state-run lender had made necessary provisions.

One loan of Rs 172 crore slipped into the non-performing category recently.

Chunduru said that two more loan accounts totalling about Rs 130 crore were under the watch list.

Indian Bank's total exposure to the non-banking finance companies is Rs 20,477 crore, accounting for 12.40 per cent of its gross advances as of September 30.

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Indian Bank says most of its Rs 1,800-crore loan to IL and FS is 'good'

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