what is IL & FS crisis?
Answers
Answer:
Explanation:
IL&FS as name suggests is a infrastructure leasing and finance company, it has recently come into news because of its bankruptcy, as you can see it in the about photo it owes more than it can repay now. This happened purely bacuse of mismanagement (according to a report)
The reason it is a crisis, is just simple that the company’s investments are chiefly in public assets—infrastructure projects. Banks and financial institutions have lent money not just to IL&FS, but also to these projects. Financial firms hold not just equity in its various arms, but also its debt papers. Moody’s Investors Service estimated that IL&FS’s bank loan exposure was 0.5-0.7% of banking system loans, while its outstanding debentures and commercial paper accounted for 1% and 2%, respectively of the domestic corporate debt market. Allowing the firm to head to the bankruptcy court will be an unmitigated folly (data from livening)
Last Friday the stock market was in panic because of its present position so it is important to bring stability in the market or else part of our economy will be in loss
Hey mate,.
IL&FS Financial Services Ltd. (IFIN), reported a gross non-performing asset (NPA) ratio of _____80___% as at end December 2018.
Hope it will help you