Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.


Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence


Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
2-min read

IL&FS Financial Services Declares Fresh Defaults of Rs 395 Crore

The company was unable to service its obligations in respect of bank loans (including interest), term deposit and short term deposit, it said in a regulatory filing.


Updated:September 27, 2018, 10:34 PM IST
IL&FS Financial Services Declares Fresh Defaults of Rs 395 Crore
File photo of Infrastructure Leasing and Financial Services Ltd. office in Mumbai.

New Delhi: IL&FS Financial Services on Thursday said it has defaulted on seven fresh payment obligations worth Rs 395.46 crore.

The company was unable to service its obligations in respect of bank loans (including interest), term deposit and short term deposit, it said in a regulatory filing.

These defaults were in respect of five bank loans (including interest) totalling Rs 239.50 crore, term deposit obligation of Rs 103.53 crore and short term deposit worth Rs 52.43 crore.

The short term deposit of Rs 52.43 crore was due for September 27, 2018, while the term deposit of Rs 103.53 crore was to be serviced on September 25.

In bank loan repayments, it defaulted on Rs 100.60 crore and Rs 50.30 crore obligations due for September 24, while a Rs 62.90 crore loan due on September 26 could not be serviced.

It also defaulted on loan repayments of Rs 50.20 crore (due September 16) and Rs 20.50 crore (September 12), IL&FS Services said in the filing.

Having already declared three defaults this month, the company has thus far not been able to service a total of 10 obligations. On Monday, it had disclosed defaulting on interest payments on commercial papers. Following this, the company has been barred from accessing the commercial papers market for up to six months from the date of repayment of this obligation.

The troubled IL&FS group has been on a spree of defaults which led to resignation of IL&FS Financial Services Managing Director and Chief Executive Ramesh C Bawa and some key board members on September 21.

Amidst monetary defaults, the group is also grappling with corporate governance issues. IL&FS has an aggregate debt pile of Rs 91,000 crore and it has 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.

State-owned LIC is the largest shareholder with a fourth of the firm's equity, while Orix Corporation of Japan owns 23.5 per cent.

Other shareholders include Abu Dhabi Investment Authority with 12.5 per cent stake, IL&FS Employees Welfare Trust with 12 per cent, HDFC with 9.02 per cent, Central Bank of India with 7.67 per cent and State Bank of India (SBI) with 6.42 per cent at March-end 2018.

IL&FS Financial Services earlier also informed the stock exchanges that Infrastructure Leasing & Finance Services Limited (IL&FS), the promoter and majority shareholder of the company, filed an application with the National Company Law Tribunal, Mumbai Bench on September 24 seeking certain reliefs in connection with filing of a scheme of arrangement under Section 230 of the Companies Act, 2013.

LIC and SBI have stated that they will not let the financial conglomerate to collapse and efforts are on to help the entity.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

Also Watch

Most Active
Company Price Change %Gain
HDFC 2,049.30 3.78
Maruti Suzuki 6,591.95 10.39
ICICI Bank 417.50 7.99
HDFC Bank 1,199.60 8.95
Reliance 1,254.35 6.39
Company Price Change %Gain
Astral Poly Tec 1,213.70 5.25
HDFC 2,052.10 3.92
SBI Life Insura 815.85 1.73
Zee Entertain 301.10 -2.49
Maruti Suzuki 6,585.25 10.89
Top Gainers
Company Price Change %Gain
Eicher Motors 17,860.20 13.38
Hero Motocorp 2,862.90 13.06
IndusInd Bank 1,419.60 10.71
UltraTechCement 4,269.65 10.43
Maruti Suzuki 6,591.95 10.39
Company Price Change %Gain
Hero Motocorp 2,849.40 12.52
Maruti Suzuki 6,585.25 10.89
IndusInd Bank 1,419.60 10.74
Bajaj Finance 3,705.60 10.19
SBI 301.70 10.09
Top Losers
Company Price Change %Gain
Power Grid Corp 196.20 -2.46
Zee Entertain 301.40 -2.41
Infosys 805.00 -1.91
TCS 2,065.45 -1.74
NTPC 119.85 -1.52
Company Price Change %Gain
Power Grid Corp 196.35 -2.39
Infosys 805.10 -1.94
TCS 2,065.60 -1.74
NTPC 119.90 -1.52

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results