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Rare India Defaulter IL&FS Is Said to Be Delinquent on More Debt

  • IL&FS defaulted on 3 billion rupees of borrowings from SIDBI
  • SIDBI has asked IL&FS for a repayment plan within 10 days
Indian Rupee Banknotes Ahead of Budget Announcement
Photographer: Dhiraj Singh/Bloomberg

The Indian infrastructure finance firm behind a rare default last month that is reverberating through the nation’s credit markets is delinquent on more borrowings, people familiar with the matter said.

Infrastructure Leasing & Financial Services Ltd., which helped fund India’s longest tunnel, is in default on 3 billion rupees ($41 million) of short-term borrowings taken through so-called inter-corporate deposits from Small Industries Development Bank of India, the people said. Government-backed SIDBI has sought a repayment plan, according to the people, who asked not to be identified because the details are private.