 "Illustration by Binay Sinha")
The failure of the Infrastructure Leasing & Financial Services (IL&FS) rights issue could mean an escalation of problems for the financial sector. The rights issue could have acted as a sort of backstop although the defaulting non-banking financial company (NBFC) would need a great deal more than the Rs 45 billion (bn) that the issue was supposed to raise.
The group has debt of about Rs 910 bn on the books — it’s hard to tell due to the number of subsidiaries. It is also owed about Rs 160 bn by the government, according to news sources. And, by end
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