IL&FS May Not Have Disclosed Bad Loans for Years

Indian shadow bank Infrastructure Leasing & Financial Services (IL&FS), which collapsed late last year, may not have disclosed bad loans on its books for years despite a big part of its loan book having soured, a report from India’s central bank said, Reuters reported. The Indian government took control of IL&FS late last year after it defaulted on some of its debt, triggering wider concerns about risk in the rest of the country’s financial system. The government also appointed a new board. The central bank’s report, included in regulatory filings by IL&FS on Wednesday, found that IL&FS, one of India’s biggest non-banking finance companies, or shadow banks, had not declared bad loans in the four years to March 31, 2018. Reserve Bank of India’s (RBI) report, dated March 22, 2019, found that non-performing assets on IL&FS’s books were as high as 70% of its total loans and advances by March 31, 2018. Read more