Uday Kotak-led Infrastructure Leasing and Financial Services (IL&FS) board has warned about banks facing Rs 53,000 crore worth exposure to finance company. Since the total exposure of the banks to the NBFC is nearly 16 percent, it is \u201ccritical to financial stability,\u201d The Indian Express reported citing a report on states of affairs at IL&FS said. The board also cautioned that the \u00a0\u201cfuture impact of more defaults in the group, if not addressed in an orderly manner, may be catastrophic for financial stability.\u201d The borrowing of IL&FS from banks and financial institutions adds to nearly Rs 63,000 crore as per the balance sheet of 2017-2018, the Ministry of Corporate Affairs (MCA) had noted in the Original Petition based on a confidential note dated September 30, 2018 from the Department of Economic Affairs that on a consolidated basis. Also read: Share market LIVE updates: Sensex zooms 450 points, Nifty reclaims 10,500; Yes Bank surges up to 6% \u201cIf the exposure of banks to the IL&FS Group is assumed to be about Rs 53,000 crore, then considering that the exposure of the entire banking sector to all NBFCs is about Rs 3.3 lakh crore, IL&FS group is not inconsequential, but critical to the financial stability as its share in the total exposure of the banks to the NBFC sector is about 16 per cent,\u201d the report submitted by the board to the National Company Law Tribunal on Wednesday. Rs 25,767 crore are owed by the IL&FS group towards investment in non-convertible debentures by investors, commercial paper Rs 3,028 crore, NBFCs Rs 1,707 crore, corporates Rs 1,102 crore, financial institutions Rs 9,137 crore and foreign banks Rs 6,030 crore, the report said. \u201cThe future impact of more defaults in the group, if not addressed in an orderly manner, may be catastrophic for the financial stability,\u201d the board said.