MUMBAI, Sept 27 (Reuters) - IL&FS Financial Services, part of India’s Infrastructure Leasing & Financial Services (IL&FS), said on Thursday it missed repayments on a host of bank loans and some term deposits due this month.
IL&FS is a major Indian infrastructure finance and construction company, which has built up big debts and is now facing a credit crunch. As a result, Indian authorities are trying to try to calm market fears that IL&FS’s troubles could trigger a crisis in the wider non-banking financial sector.
IL&FS Financial Services said it was unable to service its obligations for bank loans due on Sept 12, 16, 24 and 26, a term deposit due Sept 25 and a short-term deposit due Sept 27.
The Economic Times reported on its website that the government has said it would look into helping to complete projects undertaken by the parent IL&FS and could also buy some of its healthy assets. (bit.ly/2xCEsRG)
Reporting by Abhirup Roy. Editing by Jane Merriman