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The Reserve Bank of India has asked banks to declare details of their exposure and provisions related to troubled Infrastructure Leasing and Financial Services as part of their quarterly results. In a notification on Wednesday, the RBI said banks and financial institutions, in their notes to accounts, should mention the total amount of exposure, which are non-performing assets as per IRAC norms, and are not classified as NPAs related to IL&FS.
Further, banks should also outline the provisions required to be made and the provisions actually held for the debt-ridden infrastructure firm and its group entities.
The instruction comes after the February 25 order of the National Company Law Appellate Tribunal, which said that no financial institution will declare the accounts of IL&FS, or its entities as NPA, without its prior permission.
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