IL&FS Financial Services MD & CEO Ramesh Bawa, independent directors quit

Non-executive director Vibhav Kapoor has also resigned; Kaushik Modak names new CEO

Heads have started rolling at the crisis-ridden Infrastructure Leasing & Financial Services (IL&FS) group. Ramesh Bawa, managing director and chief executive of IL&FS Financial Services (IFIN), has resigned, the group informed the stock exchanges on Friday, adding that he did not cite any reason. IFIN Executive Director Kaushik Modak will replace Bawa as CEO, market sources said. Four independent directors Renu Challu, Shubhalakshmi Panse, Uday Ved and S S Kohli and executive director Vibhav Kapoor have also resigned from the board.

The board had eight directors — four group representatives, including MD & CEO, and four independent directors. Now, only two group directors, Hari Sankaran and Arun Saha, remain. 

    

Modak, the incoming CEO, co-founded Swakarma Finance before taking up his assignment with IL&FS in June. Between May 2015 and September 2017, he worked as CEO and country head of Rabobank India. 

IFIN, a subsidiary of IL&FS, was put up for sale three weeks ago, but has failed to find any takers as prospective investors are worried over its high bad debt and recent defaults. 

IFIN’s sagging financials and the Reserve Bank of India’s (RBI’s) recent directive banning the financial services firm from accessing commercial paper market following a default have changed the mood among prospective buyers.

IL&FS has informed the BSE that it has not been able to service its obligation in respect of Letter of Credit payment to IDBI Bank on September 20, 2018. It was a non-banking day on Thursday and hence payable September 21, 2018