TFIPOST हिन्दी
TFIPOST Global
Tfipost.com
Tfipost.com
No Result
View All Result
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    LeT’s Muridke Exit: Bahawalpur the New Hub

    Pakistan’s Terror Map Shifts as Lashkar-e-Taiba Flees 400 km South from Muridke to Bahawalpur After Op Sindoor

    Even Terrorists Are Treated Better": Imran Khan Alleges Targeted Abuse

    Treated Worse Than Terrorist: Imran Khan Blames Army Chief Asim Munir for Jail Torture

    Raj Thackeray Warns BJP MP: ‘We’ll Drown You in Mumbai’s Sea’ Over Marathi Row

    Dubo Dubo Ke Maarenge : Raj Thackeray Threatens to Drown BJP MP Nishikant Dubey

    Trump’s Repeated ‘India-Pakistan War’ Boasts: Why It’s Time India Moved On

    Trump’s Repeated ‘India-Pakistan War’ Boasts: Why It’s Time India Moved On

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    Air India Crash: US Safety Board Urges Caution Amid Ongoing Investigation

    Air India Crash: US Safety Board Urges Caution Amid Ongoing Investigation

    AI Appreciation Day Celebrated Globally, Spotlight on Innovation and Ethical Progress

    AI Appreciation Day Celebrated Globally, Spotlight on Innovation and Ethical Progress

    India Achieves 50% Non-Fossil Fuel Power Capacity

    India Achieves 50 pc Non-Fossil Fuel Power Capacity, Five Years Ahead of Schedule

    Advantages of Using an EMI Calculator Before Applying for a Personal Loan

    Advantages of Using an EMI Calculator Before Applying for a Personal Loan

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    Strategic Shift: Bitra Island for Defence Forces

    India Secures Strategic Edge: Centre Moves to Acquire Bitra Island in Lakshadweep for Defence Forces

    India Successfully Tests Prithvi-II and Agni-I Ballistic Missiles

    India Successfully Tests Nuclear Capable Agni-I & Prithvi-II Ballistic Missiles in Odisha, Strengthens Strategic Deterrence

    Successful Test of ‘Akash Prime Air Defence System’ in Ladakh

    Successful Test of ‘Akash Prime Air Defence System’ at 15,000 Feet in Ladakh

    CDS Chauhan: India Needs Tomorrow’s Tech to Win Today’s Wars

    India Needs Tomorrow’s Tech to Win Today’s Wars, Says CDS Anil Chauhan; Urges Indigenous Tech Push

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    TRF Declared Global Terror Outfit After India’s Swift Diplomatic Strike

    India’s 72-Hour Blitz After Pahalgam Gets TRF Blacklisted by Washington

    TRF Ban a Win for India: Renewed Momentum to Greylist Pakistan at FATF

    TRF Sanctioned: Will Pakistan’s Terror Nexus Drag It Back to FATF Grey List?

    US Declares Pakistan’s Lashkar Proxy TRF a Terror Outfit,

    Pahalgam Massacre: US Declares Pakistan’s Lashkar Proxy TRF a Terror Outfit, Cites Trump’s Justice Call

    Baloch Insurgents Kill 29 Soldiers: Pakistan Army Losing Control in Balochistan

    Is Balochistan Slipping Away from Pak? 29 Soldiers Killed as BLA, BLF Launch Simultaneous Attacks

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    NCERT Textbook Reveals Mughal Religious Intolerance

    Ruthless Babur, Violent Akbar, Destructive Aurangzeb: NCERT Textbook Reveals Mughal Religious Intolerance

    India Built Gardens Long Before Babur Dreamt of Charbagh

    Before the Mughals: India’s Civilisation Built Gardens Long Before Babur Dreamt of Charbaghs

    Revisiting the MANUSMRITI: Why India’s Youth Must Study This Ancient Epic

    Revisiting the MANUSMRITI: Why India’s Youth Must Study This Ancient Epic

    Echoes of the Cholas in Today’s Bharat

    Conqueror of the Seas: Rajendra Chola and the Rise of Naval Bharat

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Entertainment
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Review Batery Casino India

    Review Batery Casino India

    What Learners Say about Simplilearn AI Course Reviews?

    What Learners Say about Simplilearn AI Course Reviews?

    Karnataka Govt Blames RCB for Chinnaswamy Stampede

    Congress- led Karnataka Govt Blames RCB for Chinnaswamy Stampede, Cites Kohli’s Video in HC

    Ace Alliance: Accelerating Growth in the European iGaming Market

    Ace Alliance: Accelerating Growth in the European iGaming Market

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
Tfipost.com
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    LeT’s Muridke Exit: Bahawalpur the New Hub

    Pakistan’s Terror Map Shifts as Lashkar-e-Taiba Flees 400 km South from Muridke to Bahawalpur After Op Sindoor

    Even Terrorists Are Treated Better": Imran Khan Alleges Targeted Abuse

    Treated Worse Than Terrorist: Imran Khan Blames Army Chief Asim Munir for Jail Torture

    Raj Thackeray Warns BJP MP: ‘We’ll Drown You in Mumbai’s Sea’ Over Marathi Row

    Dubo Dubo Ke Maarenge : Raj Thackeray Threatens to Drown BJP MP Nishikant Dubey

    Trump’s Repeated ‘India-Pakistan War’ Boasts: Why It’s Time India Moved On

    Trump’s Repeated ‘India-Pakistan War’ Boasts: Why It’s Time India Moved On

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    Air India Crash: US Safety Board Urges Caution Amid Ongoing Investigation

    Air India Crash: US Safety Board Urges Caution Amid Ongoing Investigation

    AI Appreciation Day Celebrated Globally, Spotlight on Innovation and Ethical Progress

    AI Appreciation Day Celebrated Globally, Spotlight on Innovation and Ethical Progress

    India Achieves 50% Non-Fossil Fuel Power Capacity

    India Achieves 50 pc Non-Fossil Fuel Power Capacity, Five Years Ahead of Schedule

    Advantages of Using an EMI Calculator Before Applying for a Personal Loan

    Advantages of Using an EMI Calculator Before Applying for a Personal Loan

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    Strategic Shift: Bitra Island for Defence Forces

    India Secures Strategic Edge: Centre Moves to Acquire Bitra Island in Lakshadweep for Defence Forces

    India Successfully Tests Prithvi-II and Agni-I Ballistic Missiles

    India Successfully Tests Nuclear Capable Agni-I & Prithvi-II Ballistic Missiles in Odisha, Strengthens Strategic Deterrence

    Successful Test of ‘Akash Prime Air Defence System’ in Ladakh

    Successful Test of ‘Akash Prime Air Defence System’ at 15,000 Feet in Ladakh

    CDS Chauhan: India Needs Tomorrow’s Tech to Win Today’s Wars

    India Needs Tomorrow’s Tech to Win Today’s Wars, Says CDS Anil Chauhan; Urges Indigenous Tech Push

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    TRF Declared Global Terror Outfit After India’s Swift Diplomatic Strike

    India’s 72-Hour Blitz After Pahalgam Gets TRF Blacklisted by Washington

    TRF Ban a Win for India: Renewed Momentum to Greylist Pakistan at FATF

    TRF Sanctioned: Will Pakistan’s Terror Nexus Drag It Back to FATF Grey List?

    US Declares Pakistan’s Lashkar Proxy TRF a Terror Outfit,

    Pahalgam Massacre: US Declares Pakistan’s Lashkar Proxy TRF a Terror Outfit, Cites Trump’s Justice Call

    Baloch Insurgents Kill 29 Soldiers: Pakistan Army Losing Control in Balochistan

    Is Balochistan Slipping Away from Pak? 29 Soldiers Killed as BLA, BLF Launch Simultaneous Attacks

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    NCERT Textbook Reveals Mughal Religious Intolerance

    Ruthless Babur, Violent Akbar, Destructive Aurangzeb: NCERT Textbook Reveals Mughal Religious Intolerance

    India Built Gardens Long Before Babur Dreamt of Charbagh

    Before the Mughals: India’s Civilisation Built Gardens Long Before Babur Dreamt of Charbaghs

    Revisiting the MANUSMRITI: Why India’s Youth Must Study This Ancient Epic

    Revisiting the MANUSMRITI: Why India’s Youth Must Study This Ancient Epic

    Echoes of the Cholas in Today’s Bharat

    Conqueror of the Seas: Rajendra Chola and the Rise of Naval Bharat

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Entertainment
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Review Batery Casino India

    Review Batery Casino India

    What Learners Say about Simplilearn AI Course Reviews?

    What Learners Say about Simplilearn AI Course Reviews?

    Karnataka Govt Blames RCB for Chinnaswamy Stampede

    Congress- led Karnataka Govt Blames RCB for Chinnaswamy Stampede, Cites Kohli’s Video in HC

    Ace Alliance: Accelerating Growth in the European iGaming Market

    Ace Alliance: Accelerating Growth in the European iGaming Market

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
Tfipost.com
Tfipost.com
No Result
View All Result
  • Premium
  • Politics
  • Economy
  • Defense
  • Geopolitics
  • Knowledge
  • Law
  • Lounge

How a government panel led by Uday Kotak solved the IL&FS Debt Crisis

Abhinav Singh by Abhinav Singh
23 September 2021
in Trending
Uday Kotak, Evergrande, IL&FS, Debt, Financial

PC: The Financial Express

Share on FacebookShare on X

Government of India on Wednesday (September 22) extended the term of Uday Kotak, chairman of Kotak Mahindra Bank as the non-executive chairman of debt-ridden Infrastructure Leasing and Financial Services Ltd (IL&FS) group by another six months. Uday’s tenure was supposed to end on October 2 but the government through a gazette notification extended the tenure.  

Kotak’s extension comes a day after he talked about Chinese company Evergrande and how it reminded him of the IL&FS crisis. In the tweet, Kotak remarked that a 61 per cent recovery of outstanding debt had been observed at IL&FS.

RelatedPosts

Who is Uday Kotak? How He Lost More than 10 Thousand Crores in A day!?

It’s curtains for the $10 Billion Sony-Zee Drama

India has been inundated by a wave of “instant loan” apps. RBI will ban most of them

Load More

Uday Kotak tweeted, “Evergrande seems like China’s Lehman moment. Reminds us of IL&FS. Indian Government acted swiftly. Provided calm to financial markets. The Government appointed board estimates 61% recovery at IL&FS. Evergrande bonds in China trading ~ 25 cents to a $,” 

Evergrande seems like China’s Lehman moment. Reminds us of IL&FS. Indian Government acted swiftly. Provided calm to financial markets. The Government appointed board estimates 61% recovery at IL&FS. Evergrande bonds in China trading ~ 25 cents to a $.

— Uday Kotak (@udaykotak) September 21, 2021

A thankless task

Kotak’s extension is indeed laudable as he is undertaking what is undoubtedly a difficult, underappreciated, and thankless task. IL&FS at one time threatened to be India’s Lehman moment, capable of triggering a collapse in the economy. However, the Modi government with its all ‘hands on the deck’ approach quickly accessed the gravity of the crisis and jumped in with its resources. 

Uday Kotak was appointed by the government as the head of the lender’s board which also included Tech Mahindra Vice-Chairman, Managing Director and CEO Vineet Nayyar, former Sebi chief G N Bajpai, former ICICI Bank chairman G C Chaturvedi, former IAS officers Malini Shankar and Nand Kishore in 2018 to help the troubled company wade through the rough waters.

Reportedly, under his tenure, the centre-appointed board discovered that there was a complex web of over 250 companies that were part of the overall IL&FS group. Over 90 per cent of the flagship company’s assets were classified as a dud. 

The Genesis 

IL&FS is a non-banking financial company (NBFC), or ‘shadow bank’ that was founded in 1987 with equity from Central Bank of India, Unit Trust of India and Housing Development Finance Co to fund infrastructure projects when peers IDBI and ICICI were focused more on corporate projects. For a layman, Shadow Bank is a term used to refer to intermediaries in the banking and finance segment that provide similar services as that of traditional banks, however, they are not under similar regulation.

IL&FS’s major shareholders include Life Insurance Corp of India holding 25.3% stake, State Bank of India with 6.42%, Japan’s Orix Corp holding 23% and the Abu Dhabi Investment Authority with 12%. 

However, the company defaulted in payment obligations of bank loans (including interest), term and short-term deposits and failed to meet the commercial paper redemption obligations. 

A debt of 94,000 crores

Succinctly put, with a consolidated debt of around Rs 94,000 crores, the company was simply unable to find resources to pay its debt and found itself in an asset-liability mismatch. More than 60 per cent of the debt owed by the company was in the road building, power and water work projects.

Following the defaults, rating agency ICRA downgraded the ratings of its short-term and long-term borrowing programs. The defaults also jeopardised hundreds of investors, banks, and mutual funds associated with IL&FS, and sparked panic among equity investors, even as several non-banking financial companies faced turmoil amid a default scare. 

Ripple effect of IL&FS’s default

Such was the ripple effect of IL&FS’s default that an entertainment media giant like Zee Entertainment Enterprises Ltd (ZEEL) nearly ran itself into the ground. The IL&FS default resulted in the freezing of already shallow domestic debt markets even as it sent shockwaves into the financial system in a domino effect. 

As reported by TFI, Sony and Zee signed a merger deal on Wednesday after the latter’s debt as of March 2021 stood at Rs 3.17 billion. Zee was among the most profitable and professionally run companies. However, the investments of the Zee group in the infrastructure market went truly south due to the collapse of IL&FS. 

The banks tightened lending norms after the collapse of the IL&FS Group and this led to a massive crisis in the NBFC market. As the investment of the Zee group was exposed to NBFCs, it led to a sharp decline in the share prices of the Zee group. 

Even former Chairman Subhash Chandra pointed out the accumulation of debt to the collapse of IL&FS, “I had admitted the wrong decisions taken by me in the past which caused the occurrence of the default, due to the asset-liability mismatch. Goes without saying, that it was an after-effect of the liquidity crisis triggered by the IL&FS case,” 

 Read More: Sony-Zee merger: The mother of all entertainment genre mergers is here

Comparisons between Evergrande and IL&FS

Reported extensively by TFI, China’s real estate giant Evergrande’s dipping fortunes could ultimately affect everything from the jobs market to property prices in the country. This is why Fitch Ratings and Moody’s Investors Service seem to have issued warning signs about the likelihood of a default by the Evergrande Group. 

Chinese stock markets seem to agree with the larger risks attached to Evergrande Group’s default. They fear a contagion effect from Evergrande’s debt default hitting the property and banking sectors. This contagion effect has escalated the risks associated with investments inequities. 

Evergrande’s default has also triggered worries of similar financial troubles gripping other big property developers and causing further mayhem in the Chinese economy. Evergrande, which employs 200,000 people, has a presence in more than 280 cities and claims to indirectly generate 3.8 million Chinese jobs, had been on a reckless buying spree for more than a decade, which appears to have caught up now. Regulators have warned that it is $305 billion of liabilities could spark broader risks to China’s financial system if its debts are not stabilised.

Read More: Evergrande topples, crushes China’s markets under its weight

While Evergrande is purely a market failure and its market resolution — while it may or may not yet require Chinese government intervention given its scale, IL&FS was a monster created by India’s Nehruvian quasi-socialist past and the red-tapism of the bureaucracy, which came to full effect when the audits in the aftermath of the crisis were found to be botched as well. 

Tags: EvergrandeIL&FSNBFCsony entertainment televisionSubhash ChandraUday KotakZee Entertainment Enterprises
Share71TweetSend
Previous Post

NCERT curriculum is finally going to change, a move that can undo decades of misinformation

Next Post

Zero Bridge Srinagar: History and Signifiance

Related Posts

Even Terrorists Are Treated Better": Imran Khan Alleges Targeted Abuse
Trending

Treated Worse Than Terrorist: Imran Khan Blames Army Chief Asim Munir for Jail Torture

19 July 2025

Former Pakistan Prime Minister Imran Khan has once again launched a scathing attack on the country’s military establishment, this...

Trump’s Repeated ‘India-Pakistan War’ Boasts: Why It’s Time India Moved On
Trending

Trump’s Repeated ‘India-Pakistan War’ Boasts: Why It’s Time India Moved On

19 July 2025

US President Donald Trump has once again claimed that he prevented a war between India and Pakistan—this time by...

Madras High Court Bars Nama Sankeerthanam in Residential Area
Trending

Madras High Court Bars Nama Sankeerthanam in Residential Areas Without Collector’s Permission

18 July 2025

The Madras High Court on Wednesday restrained the use of residential premises for conducting Nama Sankeerthanam (congregational chanting of...

Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Currently Playing

India’s ULRA Bomber: 12,000-km Beast That Can Strike Anywhere Without Refueling

India’s ULRA Bomber: 12,000-km Beast That Can Strike Anywhere Without Refueling

00:07:39

The Shocking Truth About Mass Conversions in Tamil Nadu

00:07:26

The Butcher of Pahalgam: Sulaiman — Trained by ISI, Pakistan’s Commando-Turned-Terrorist

00:04:13

Congress’s Rohith Vemula Bill: Caste Polarization Masquerading as Reform

00:07:33

Bhima Koregaon Won’t Be Repeated; Maharashtra’s Special Act to Wipe Out Urban Naxals.

00:06:06
Facebook Twitter Instagram Youtube
tfipostTfipost.com
Right Wing | News Analysis | Indian Opinion
  • About us
  • Careers
  • Brand Partnerships
  • Terms of use
  • Privacy Policy
  • Sitemap
MASHABLE IS A GLOBAL, MULTI-PLATFORM MEDIA AND ENTERTAINMENT COMPANY. FOR MORE QUERIES AND NEWS, CONTACT US AT info@mashablepartners.com


©2025 TFI Media Private Limited

No Result
View All Result
  • Premium
  • Politics
    • Analysis
    • Opinions
    • Trending
  • Economy
    • Business
    • Finance
  • Defense
    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
TFIPOST हिन्दी
TFIPOST Global

©2025 TFI Media Private Limited