Challenges for IL&FS

Report from new board raises as many queries as it answers

The new board of Infrastructure Leasing & Financial Services, or IL&FS, has submitted a report on the way forward for the beleaguered non-banking financial company (NBFC) to the National Company Law Tribunal (NCLT). It is naturally important to understand what resolution the new board has proposed; an early, time-bound resolution would be welcome, given the stresses that IL&FS’ troubles have caused the systemically important NBFC sector. The board’s proposal includes both internal belt tightening and some infusion of capital from the promoters. This is good news for IL&FS. This newspaper has questioned the willingness to use policyholders’ money in Life