IL&FS made Rs 295 crore interest payment to LIC Mutual Fund; all details here
LIC Mutual Fund has confirmed that it received all its interest payments and/or maturity proceeds from IL&FS group entities.
The crisis at Infrastructure Leasing & Financial Services (IL&FS) has gone intense. It continues to face irregularities in debt servicing issue, material weakening of the liquidity and lack of funding support. The group and its subsidiaries are in dire need of financial assistance, especially as its major shareholders bailed out. Apart from this, the company is also blamed for having defaulted on interest payments or corporate deposits to various mutual funds and institutions. However, today, the state-owned LIC Mutual Fund has confirmed that it has received all its interest payments and/or maturity proceeds from IL&FS group entities.
In a notification, LIC MF said, "At the very onset, the month of September’ 2018 has been a tough one for the Indian financial markets due to default of IL&FS and its group entities and later on volatility in Bond market."
It added, " Both these incidents along with advance tax outflows, rupee depreciation, GST related outflows created liquidity deficit in the market of almost 1.5 lac crores. We at LIC Mutual Fund would like to reiterate our earlier statement that there was no default in our LIC MF schemes."
Hence, the LIC MF revealed that they have recieved the balance of Rs 295 crore from IL&FS Sec Serv Ltd.
Following the ongoing crisis, the IL&FS subsidiaries once again finished another market on negative note. Today, the IL&FS Investment Managers ended at Rs 7.80 per piece down by 7.80%, while the IL&FS Engineering And Construction Company completed at Rs 13.35 per piece down 2.20% and the IL&FS Transportation Network at Rs 22.55 per piece below 3.43%.
Apart from clarification on IL&FS, the LIC MF also spoke about rupee and RBI's upcoming policy.
LIC MF said, ". We feel now that the rates are on the upward trajectory and there is a fair amount of expectation that RBI would hike Repo Rate at least by 25 bps (if not 50 bps) considering the recent sharp movement of USD INR."