Mumbai: Infrastructure Leasing & Financial Services (IL&FS) has not sought any funds from State Bank of India (SBI), the bank’s chairman Rajnish Kumar said on Wednesday.

Speaking on the sidelines of an SBI Card event in Mumbai, Kumar said, “Today, there is no concrete proposal. When I receive a concrete proposal, then we will decide." SBI is a shareholder in IL&FS, along with Central Bank of India and Life Insurance Corporation of India (LIC), among others.

He said that SBI’s role as a leader in the industry is to help in stabilizing the financial markets. “Individually, what we will do, what we will not do is something that has to be examined by SBI and its board," said Kumar. He added that SBI’s board of directors will take a decision based on the larger interest of the industry as well as SBI’s own shareholders.

The RBI has initiated a special audit of IL&FS after it defaulted on its inter-corporate deposits (ICDs) raised from Small Industries Development Bank of India (SIDBI).

Last Friday, the BSE’s benchmark Sensex crashed nearly 1,500 points over a rumoured default by mortgage lender Dewan Housing Finance Ltd (DHFL) and uncertainty surrounding the future of IL&FS. Shares of other home financiers also slumped but recouped some of their losses after DHFL denied that it had defaulted on payments.

On 23 September, Kumar had also stepped in to reassure investors, saying there was no concern related to liquidity at mortgage lenders. Friday’s slump in the stocks of home financiers was attributed to fears of liquidity tightness and potential systemic risk arising from exposure to IL&FS.

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