Year of reckoning for India Inc: IL&FS default's domino effect on NBFCs

In October, the government sacked the earlier board and appointed a new board led by banker Uday Kotak to set the IL&FS house right

The Indian financial sector was jolted in September this year when shadow bank IL&FS started defaulting to its debt worth Rs 910 billion. The serial defaults by IL&FS, rated the highest by rating agencies, till the default reverberated across the financial world as almost all banks and mutual funds had lent money to the infrastructure financier. The IL&FS default had a domino effect on the non-banking financial companies (NBFCs) sector as investors started selling shares of all NBFCs and anxious mutual funds dialled New Delhi for help.  

Before the IL&FS default became public, its chairman, Ravi Parthasarathy quit in July and