IL&FS Financial Services MD and CEO Ramesh C Bawa steps down

Four independent directors, namely Renu Challu, Shhubhalakshmi Panse, Uday Ved and SS Kohli, and non-executive director Vibhav Kapoor have also resigned from the board along with Bawa.

By BusinessToday.In  
Friday, September 21, 2018

The chief executive of crisis-ridden IL&FS Financial Services, Ramesh C Bawa, has resigned from his post on Friday, effective immediately. In his stead, the company is most likely to appointe incumbent executive director Kaushik Modak as the Managing Director and Chief Executive Officer, reports said.

Four independent directors, namely Renu Challu, Shhubhalakshmi Panse, Uday Ved and SS Kohli, and non-executive director Vibhav Kapoor have also resigned from the board along with Bawa. This development comes close on the heels of an announcement by the beleaguered group that it will not be able to honour its obligations against the debt of Rs 250 crore.

On September 4, it came to light that IL&FS defaulted on a short-term loan of Rs 1,000 crore from SIDBI, while a subsidiary has also defaulted Rs 500 crore dues to the development finance institution.

The company is sitting on a debt pile of around Rs 91,000 crore and had been downgraded to junk status by rating agencies following the default. Of this, Rs 57,000 crore are bank loans alone, most of which are from state-run lenders.

While IL&FS has nearly Rs 35,000 crore consolidated debt, IL&FS Financial Services has Rs 17,000 crore of debt, which sits as standard asset for most of the lenders, according to a Nomura India report.

Related Stories

IL&FS group company defaults on NCD payments due to insufficient funds
IL&FS group company defaults on NCD payments due to insufficient funds
Madras HC grants relief to Cognizant on show cause notice by Registrar of Companies
Madras HC grants relief to Cognizant on show cause notice by Registrar of Companies
ThyssenKrupp applies for EU extension on Tata Steel merger talks
ThyssenKrupp applies for EU extension on Tata Steel merger talks

Latest Stories

Kesari box office collection Day 1: Akshay Kumar, Parineeti Chopra's war saga likely to earn Rs 25 crore on Holi
Kesari box office collection Day 1: Akshay Kumar, Parineeti Chopra's war saga likely to earn Rs 25 crore on Holi
Fugitive diamond merchant Nirav Modi jailed till March 29 by London court: A timeline of his extradition case
Fugitive diamond merchant Nirav Modi jailed till March 29 by London court: A timeline of his extradition case
Resolution for Jet Airways is futile; send it for insolvency
Resolution for Jet Airways is futile; send it for insolvency
SPONSORED