(Source: IL&FS Annual Report)

Hemant Bhargava Steps Down As IL&FS Non-Executive Chairman

Life Insurance Corporation of India nominee Hemant Bhargava has stepped down as the non-executive chairman of Infrastructure Leasing & Financial Services Ltd.

The board of IL&FS has announced the appointment of LIC's independent director and former chairman Sunil Behari Mathur as the company's non-executive chairman with immediate effect, the infrastructure leasing firm said in a note to investors.

LIC is the largest shareholder owning a fourth of the firm’s equity, while Orix Corporation of Japan owns 23.5 percent. Other shareholders include Abu Dhabi Investment Authority with a 12.5 percent stake, Central Bank of India with 7.67 percent and SBI with 6.42 percent.

Hemant Bhargava was appointed as the non-executive chairman of IL&FS Ltd. after Ravi Parthasarathy stepped down from the company in July this year.

Meanwhile, the board of IL&FS met on Saturday to approve a resolution plan and discuss strategies for the company to raise funds to tide over the cash crunch. At the emergency meeting, LIC is believed to have agreed to subscribe to the forthcoming rights issue and extend some immediate working capital loan, news agency PTI reported quoting sources.

IL&FS had defaulted on inter-corporate deposits of Rs 150 crore to to the Small Industries Development Bank of India on Friday. The company is already facing a special audit by the Reserve Bank of India after the company failed to repay about Rs 350 crore of unsecured loans to SIDBI earlier during the month. The lender has inter-corporate deposits worth Rs 500 crore with IL&FS and additional deposits worth Rs 500 crore parked with its non-banking finance company arm, IL&FS Financial Services Ltd., which are due in November.

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