It’s not just public sector banks (PSBs) and NBFCs that are worried about their exposure to IL&FS. Investors holding non-convertible debentures (NCDs) worth nearly Rs. 25,000 crore are in the same boat.
According to data released by IL&FS, investors holding its NCDs have the second largest exposure after PSBs, which have to recover loans in excess of Rs. 35,000 crore. NCDs are mostly held by individual investors, dealers, NRIs and FIIs. IL&FS has a total debt of about Rs. 94,000 crore.
Though the company has outlined plans to sell some of its assets to pare debt, there is no clarity on how much it will be able to raise given the sentiments in the infrastructure sector. This has made it difficult to recover money from its receivables to pay off bankers and unsecured lenders.