The National Company Law Appellate Tribunal (NCLAT) on Thursday allowed bankers to declare the loans of debt-ridden Infrastructure Leasing and Financial Services (ILFS) as non-performing assets (NPAs), news agency ANI reported.

However, the banks cannot start their recovery proceedings, the NCLAT said.The next hearing on the matter is scheduled for May 21, according to the agency.Banks have an exposure of around Rs 55,000 crore to ILFS.The government replaced ILFS' entire board last month after recent defaults on some of its debt obligations triggered sharp declines in stock and debt markets, leading to fears about contagion in the financial sector.ILFS has initiated the sale of several assets, including road and education, to pay off its debt.(With agency inputs)Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections.

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