IL&FS Fin Services to auction Rs 5,000 cr external corporate loan book

Process of inviting bids to start next week for sale in cash; loans to over 70 companies have turned bad

IL&FS Financial Services (IFIN), the non-banking financial company arm of Infrastructure Leasing and Financial Services (IL&FS), is looking to sell its external corporate loan book through an auction.

The process for inviting bids will commence next week.

IFIN said in a statement that Rs 5,000 crore worth of corporate loans will be sold. The external loan book includes credit to over 70 firms that have turned non-performing assets.

Further, the sale will be an all-cash deal. This is part of the new board’s resolution process to address the overall debt burden. IFIN manages Rs 18,000 crore in assets, which includes