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BoI has highest exposure with Rs. 2,388 cr., followed by SBI at Rs. 2,140 crore Lenders to the crisis-hit Infrastructure Leasing and Financial Services, which has dues of Rs. 34,480 crore are keeping their fingers crossed. Almost all the public sector banks have exposure to the group companies of IL&FS. Private banks such as ICICI Bank, HDFC Bank, Axis Bank, among others, have extended loans to the group companies. Among public sector lenders, Bank of India has the highest exposure with Rs. 2,388 crore, followed by State Bank of India (Rs. 2,140 crore). Since the account is showing signs of stress, as Reserve Bank of India norms mandate, banks have to put it under special mention account and start working on the resolution mechanism. According to bankers, some lenders are seeing delay in repayment and have put the account under watch. After IL&FS was unable to service short term loans, rating agencies have downgraded the company to default category. There are three categories of special mention account, SMA-0 — when principal or interest payment not overdue for more than 30 days but account showing signs of incipient stress, SMA-1 when the principal or interest payment overdue between 31 days and 60 days, and SMA-2, when principal or interest payment overdue between 61 days and 90 days. If it is overdue for more than 90 days, the account is classified as NPA. “The companies are servicing the loans, though there may be some delay for some banks,” said a chief executive of a public sector bank, that has a significant exposure to the IL&FS group. “Right now, we do not need any additional provisioning. However, we are in touch with the company. We are monitoring the situation closely,” the official said.
