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RBI rejects lenders’ request for standstill arrangement on IL&FS Group loans

Updated : January 09, 2019 06:28 AM IST

The Reserve Bank of India (RBI) on Tuesday turned down lenders' request to allow standstill arrangement on IL&FS Group loans, said sources familiar with the matter.

Banks had sought at least six months standstill arrangement from RBI for all loans to the IL&FS Group subsidiaries to protect their balance sheet.

Earlier, an order by the National Company Law Appellate Tribunal (NCLAT)  barred lenders from taking any action to recover their dues because the case is sub-judice, sources told CNBC-TV18, requesting anonymity, adding that the matter is being heard at the National Company Law Tribunal NCLT and NCLAT.

Banks’ exposure is 60 percent of the total debt of the IL&FS group, or Rs 50,000 crore out of Rs 91,000 crore and a part of this could turn nonperforming asset (NPA) because the payments have not come in at least for a month or so, sources added.
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