23/09/18

India's NPL Crisis Erupts: A Major Shadow Bank Defaults On Three Debt Payments



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India's NPL Crisis Erupts: A Major Shadow Bank Defaults On Three Debt Payments
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IL&FS Investment Managers, a unit of India's Infrastructure Leasing & Financial Services (IL&FS) - an Indian infrastructure development and finance company and one of the nation's largest "shadow banks" - which announced three debt defaults on Friday, said on Saturday morning its Managing Director Ramesh Bawa had resigned as managing director and chief executive officer as a management exodus begins. The company's independent directors - Renu Challu, Surinder Singh Kohli, Shubhalakshmi Panse and Uday Ved - had also submitted their resignation papers.

The company first defaulted on commercial paper, then on short-term borrowings known as inter-corporate deposits according to Bloomberg. It has also failed to pay Rs 4.5 billion ($62 million) in ICDs to government-backed lender Small Industries Development Bank of India.

As we noted on Friday, IL&FS revealed a series of three defaults on its non-convertible debt obligations and inter-corporate deposits.

With the meltdown of IL&FS in motion, another unit, IL&FS Transportation Networks, reported that its ...

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