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IL&FS incident is unfortunate, says RBI director S Gurumurthy

IL&FS assets are built for 30 years' return on 10-year finance, says Gurumurthy

Il&fs Crisis  |  Reserve Bank Of India

T E Narasimhan  |  Chennai 

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 ...

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First Published: Mon, September 24 2018. 01:36 IST