INSUBCONTINENT EXCLUSIVE:
Debt-laden Infrastructure Leasing and Financial Services (ILFS) has sought to roll over its corporate deposits as it has failed to repay
more than three-fourths of the institutional, one-year term deposit of Rs 250 crore, a market source with direct knowledge of the matter
told ET.
Small Industries and Development Bank of India (SIDBI) has received only Rs 50 crore while the remaining Rs 200 crore is not yet
credited, said the person, who did not wish to be identified.
Email queries sent to ILFS and SIDBI remained unanswered until the publication
formal communication may come this weekend.
SIDBI, the government-owned lender to small enterprises, invested the entire sum out of its
surplus money.
The term deposit was for one-year maturity, and the term was over in the past few weeks.
On August 28, ILFS Financial
Services, a wholly owned subsidiary of ILFS, defaulted on repaying about a few hundred crores of rupees to its commercial-paper investors
including LIC and BOI AXA are said to have bought those CPs, said two market sources
They could not be contacted immediately for comments.
In compliance with the Reserve Bank Commercial Paper Directions, 2017, the company
will not access CP market up to Feb 28 next year, the company told the BSE.
The RBI asked ILFS Financial Services to cut debt exposure in
all ILFS group entities by March next year, complying with the regulations on group debt exposure for non-banking financial companies.
The
board of ILFS called a meeting on Friday to take a call on fundraising, sale of assets, including road projects, and default by its
subsidiary ILFS Financial Services (IFIN) on commercial paper.
The group has been trying to trim Rs 80,000-crore consolidated debt (until a
year ago) by selling assets, refinancing existing loans at the holding company and operating companies, and trying to merge the group with
rivals.
On July 24, ET reported that LIC of India may invest more money into the group
