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RBI to help IL&FS restore its solvency

Reserve Bank of India (RBI) Governor Urjit Patel yesterday said that the central bank will engage with and support debt-stricken IL&FS in its efforts to salvage the infrastructure financing company. “The RBI will engage with the new management, if necessary, on assistance in its efforts going forward,” Patel said while announcing the latest monetary policy review here.

On Monday, the Central government, acting on a National Company Law Tribunal’s Mumbai bench order, superseded the management of IL&FS by appointing a six-member board led by banker Uday Kotak to restore its financial solvency and prevent further mismanagement in order to protect public interest. “The well-structured institutional measures taken by the central government in the IL- &FS case have been timely and appropriate. These have helped to stabilise the situation,” Patel added.