The newly constituted board of the beleaguered IL&FS under the chairmanship of Uday Kotak may meet this week again to chalk out the future course of action to resolve the current financial crisis according to a source. Following a marathon first board meeting held last Thursday, it is learnt that the members will meet this week again to propose how the crisis can be resolved at the debt ridden Infrastructure Leasing & Financial Services (IL&FS) group. To take stock of the current situation, the new board members held their first meeting last week, which was followed by a management as well as a lawyers’ presentation.
What the IL&FS group proposes to do is still to be decided and hopefully the board will meet this week again (to decide the future course of action), the source said. It will consume time to explore the exact reasons behind the present mess that has led to a series of loan defaults by various IL&FS group companies, he added. IL&FS group is credited with building India’s longest 9.2 kilometres Chenani-Nashri tunnel in Jammu & Kashmir which was thrown open bills, certificates of deposit and commercial paper for shorter horizon. In addition, income schemes — type of debt mutual funds that deliver a steady income — have seen a pullout of Rs 325.04 billion Besides, gold ETFs continued to see net outflow of Rs 330 million. However, equity and equity-linked saving scheme (ELSS) saw an infusion of Rs 112.50 billion. Besides, balanced funds witnessed an inflow of Rs 7.31 billion. Mutual funds are investment vehicles made up of a pool of funds collected from a large number of investors. The funds are invested in stocks, bonds and money market instruments, among others.