In 2017, the RBI had directed IFIN to reduce exposure to IL&FS group companies. Interestingly, the primary security to lend to Siva group between December 2011 and December 2014 were shares held by Siva group in Tata Teleservices Ltd.SFIO alleged that these shares were not revalued, impacting the security cover of such lending. Total exposure to the Siva group stood at ₹182.45 crore on March 2015 without any security cover. IFIN had entered into 15 transactions with the Siva group, involving advance of loans and investment in debentures of different Siva group companies. In March 2017, RBI had recommended 100% provisioning of the ₹190 crore extended to Siva Group but IFIN wrote it off.

Source: Mint June 03, 2019 17:15 UTC