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IL&FS Crisis
IL&FS stands for Infrastructure Leasing and Financial Services Ltd.,
which is a holding company of the larger group known as IL&FS Group.
It was founded in the year 1987 with significant equity from Central
Bank of India, Unit Trust of India, and Housing Development Finance
Corporation to fund infrastructure projects since most contemporary
banks of that time focused on corporate funds rather than infrastructure-
based funds. IL&FS major stakeholders include Life Insurance Corp Of
India holding 25% stake, State Bank of India with 6.4%, Japan’s Orix
Corp holding 23%, and Abu Dhabi Investment Authority with 12%.
The following factors are responsible for the substantial financial crisis
of IL&FS-
This was the most critical factor of the fall of IL&FS. With a
consolidated debt of 90000 crores, the company was unable pay
its debt and found itself in an asset-liability mismatch.
• On Infrastructure Projects
The IL&FS crisis is to have a significant effect on current
infrastructure projects. Major banks do not give loans to finance
big infrastructure projects.
Submitted By-
Shishir Gupta
2019PGP058