UTI Writes off its entire exposure to DHFL by 100%

#1

UTI which has over Rs 1700 crores exposure to DHFL has written off its entire exposure to DHFL by 100%.

Here’s an excerpt from the company’s update to unitholders:

AMFI appointed valuation agencies have provided a standard haircut matrix for below investment grade securities based on the rating, industry, security and seniority. As per the matrix, the haircut applicable for DHFL’s senior secured NCDs is 75% as it is rated D. We anticipate there would be enhanced pressure on DHFL from all creditors, including exercise of early redemption clause and legal options by various lenders. This is expected to further delay the recovery efforts of the company in disposal of its assets in an orderly manner. Furthermore, there is no secondary market for such securities in the current scenario. Considering all these factors we have increased the mark-down from 75% to 100%. If there is any recovery in future, the provision will be written back to the scheme(s) on actual receipt basis.

DHFL delays interest payments on bonds, debt mutual funds fall over 50% in a single day
#2

Any idea how much exposure LIC and UTI have to IL&FS and DHFL as a percentage of their total AUMs?

#3