 "S Gurumurthy")
Non-official director with the Reserve Bank of India, S Gurumurthy, has said that the Infrastructure Leasing & Financial Services (IL&FS) issue is unfortunate and that NPA rules, applicable only to commercial banks, are not being properly implemented.
“IL&FS assets are built for 30 years’ return on 10-year finance. They have to refinance it every 10 years, which is the structural model of IL&FS,” he said.
“Basel rules are designed for commercial banks, not universal banks, which all Indian banks are, and term lending institutions, which IL&FS and the likes are. Applying NPA norms to them is like asking one to
