What is IL&FS: IL&FS is a shadow bank. A shadow bank is a financial institution which is a non-depository bank, meaning it doesn’t receive deposits like a traditional bank. Non-deposit banks includes NBFC (Non Banking Financial Companies) and Investment Banks. As these non-deposit banks doesn’t take deposit, it has largely escape regulatory oversights. IL&FS is a 30 years old, one of the india’s leading infrastructure development and finance company. State owned LIC (Life Insurance Company) is its largest stakeholder with 25.34% stake, Orix, a japnese company holds 23.54%, Abu Dhabi Investment authority holds 12.56%, HDFC holds 9.02%, Central Bank holds 7.67% and SBI holds 6.42% of stake. Problem: IL&FS has been defaulting on payment since end August 2018, means it is unable to meet its re-payment obligations of 395 crore. PTI reports, IL&FS defaulted on short tern loan of 1000 crore from SIDBI, while its subsidiary has also defaulted on 500 crore dues to...