Exposure to cash-strapped IL&FS is standard now, says Bank of Baroda

Public sector lender Bank of Baroda on Tuesday said that its exposure (credit) to cash-strapped Infrastructure Leasing and Financial Services (IL&FS) is standard and it continues to lend to non-banking finance companies (NBFCs). 

“The bank has exposure to IL&FS. The accounts that we have with IL&FS and all other NBFCs are fully performing,” BoB Managing Director and Chief Executive Officer, P S Jayakumar, told mediapersons after launching Baroda Kisan Diwas. 

He said the bank’s exposure is balanced and it has enough capital to take care of any stress scenario. 

IL&FS is facing serious liquidity issues and it, along with its subsidiaries, has defaulted on various debt repayments. 

He added that the bank continues to lend to finance companies and Housing Finance Companies in line with total exposure to them. Some exposures are increasing. Overall, the bank also has portfolio caps. 

Meanwhile, the BoB has signed 42 memorandums of understanding (MoUs) with several companies and government agencies to assist farmers, suppliers, vendors through various financial products. 

The MoUs include tie-ups of regional/zonal tie-ups with agri corporates for financial assistance to the farmers, launch of a new tractor financing scheme, and bring automation in loan processing system, among others.