Indian Bank says most of its Rs 1,800-crore loan to IL&FS is 'good'
Indian Bank, which has lent over Rs 1,800 crore to Infrastructure Leasing and Financial Services Ltd ILFS, on Friday said that most of its loans to the crisishit company were good
Chennai: Indian Bank, which has lent over Rs 1,800 crore to Infrastructure Leasing and Financial Services Ltd (IL&FS), on Friday said that most of its loans to the crisis-hit company were 'good'.
"The bank's exposure to IL&FS is Rs 1,809 crore. Out of the 10 loan accounts, six are for special purpose vehicles (SPV of IL&FS) whose revenues are ring-fenced with an escrow account," Padmaja Chunduru, Managing Director and CEO, told reporters here.
She said that one account had turned bad three years ago and that the state-run lender had made necessary provisions.
One loan of Rs 172 crore slipped into the non-performing category recently.
Chunduru said that two more loan accounts totalling about Rs 130 crore were under the watch list.
Indian Bank's total exposure to the non-banking finance companies is Rs 20,477 crore, accounting for 12.40 per cent of its gross advances as of September 30.