Aditya Birla Sun Life AMC says Crisil downgrading IL&FS Jharkhand project to impact NAV by 0.6%

Discussing the impact of the downgrade, A Balasubramanian, CEO, Aditya Birla Sun Life AMC, said, “Since it has become a BB from AA, the Rs 100 value is currently valued somewhere close to Rs 70-80 –- so 20 percent of the value gets reduced. However, from an overall NAV point of view you do reduce the value of the portfolio of that particular instrument and the impact will be about 0.5 to 0.6 percent."

He said the SPV exposure (all SPVs and not just Jharkhand Project) of all MFs together would be in Rs 1,300 crore aggregate and that of the banks would be around Rs 30,000 crore.