Lakshmi Vilas Bank says exposure to IL&FS group standard; shares gain 0.79% to Rs 89
Private sector Lakshmi Vilas Bank said on Monday it has exposure to an IL&FS subsidiary and the loans to the company are standard.
New Delhi: Private sector Lakshmi Vilas Bank said on Monday it has exposure to an IL&FS subsidiary and the loans to the company are standard.
Lakshmi Vilas Bank said it received certain queries from investors seeking clarification on the bank's exposure to the IL&FS group.
"In this regard, the bank likes to clarify that our bank has an exposure to an IL&FS subsidiary, which is currently standard," the bank said in a regulatory filing.
"Due to business constraints, we are unable to share further customer specific data," the bank said.
Infrastructure Leasing & Financial Services (IL&FS) group has defaulted on a series of interest payments earlier this month.
On 4 September, it came to light that IL&FS had defaulted on a short-term loan of Rs 1,000 crore from SIDBI, while one of its subsidiaries also defaulted on Rs 500 crore dues to the development financial institution.
IL&FS, which is credited for building the longest tunnel in the country (the Chenani-Nashri tunnel), is sitting on a debt pile of around Rs 91,000 crore and had been downgraded to junk status by rating agencies following the default.
Of this, Rs 57,000 crore are bank loans alone, most of which are from state-run lenders.
Shares of Lakshmi Vilas Bank closed 0.79 percent higher at Rs 89 on BSE.
The Gujarat Metro Rail Corporation has awarded the balance work to J Kumar Infrastructure and has also started to encash the bank guarantee of IL&FS.
"The newly appointed board of IL&FS is in the process of preparation of roadmap and its subsequent submission to NCLT, which will require IL&FS Transportation Networks Ltd (ITNL) to undertake divestment, restructuring and/or consolidation of its assets...which will have an impact on the accounting and financial aspects of ITNL," the company said in a BSE filing.
The Parliamentary Standing Committee on Finance will take stock of the developments at crisis-hit IL&FS Group for three days from 3 December