India's central bank has asked lenders to classify loans to Infrastructure Leasing & Financial Services Ltd. as nonperforming assets if they are overdue by more than 90 days, Reuters and BloombergQuint reported Jan. 8, citing sources.
The Reserve Bank of India asked banks to book such IL&FS' loans as NPAs in the quarter ended Dec. 31, 2018, according to the sources. IL&FS, which has accumulated 910 billion rupees in debt, was placed under government control in October 2018 after the company defaulted on its payment obligations. State-owned firms, including State Bank of India, own nearly 40% of the company.
The RBI rejected a request by lenders to keep a standard asset classification for loans to IL&FS while making adequate provisions against the loans.
The central bank did not respond to a Reuters' email for comment. State Bank of India and other banks were not reachable for comment.
As of Jan. 8, US$1 was equivalent to 70.15 Indian rupees.