NEW DELHI: LIC, which holds over 25 per cent stake in ILFS said that all options are open and assured that it take all possible steps to avoid contagion spreading to the market.ET Now reported chairman VK Sharma as saying that they will ensure that ILFS does not collapse.
He does not ruled out raising stake in ailing ILFS.ILFS has defaulted on over five of its obligations since August, put its headquarters on the block, and its MD CEO of the financial services arm has since resigned.
ILFS, an unlisted AAA rated NBFC, defaulted on 14 Sept, 2 weeks ago, but we are unable to predict the quantum of stress, if any, said UBS in note.ILFSs focus on long duration infra assets, which have faced significant issues over the last 3-4 years, resulting in weak cash flows.
JM Financial believes ILFS had a very aggressive ALM profile with the up to 1 year bucket having a mere 1 per cent positive mismatch and the up to 3 year bucket having a significant negative 17 per cent ALM mismatchFurther, assumptions on the assets side for ALM computation by ILFS are very aggressive in our view given they factor in maturity pattern of assets based on ILFSs right to call the loans earlier than their contractual maturity date, the brokerage said.