Yes Bank crisis: Here's how much mutual funds are exposed
Yes Bank is down about 30 percent odd, CNBC-TV18’s Sumaira Abidi tell us all the mutual funds that have an exposure to Yes Bank and to give us the data.
Mutual funds (MFs) have a cumulative exposure of about Rs 526 crore odd to the debt of Yes Bank, the private-sector lender which has been placed under moratorium by the government. On the debt side, the exposure by AMCs is above Rs 2,800 crore odd as on January 31, 2020, according to Morningstar - a global financial services firm.
Capital-starved Yes Bank has been placed under moratorium, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board.
On the equities side, the largest exposure is held by SBI MF and HDFC MF. Both MFs have about Rs 150 crore odd of exposure to the Yes Bank, the report said. Kotak MF, Nippon India, Franklin, UTI follows the list.
On the debt side - there is a big exposure by Nippon India (almost Rs 1,800 crore), which is the bulk of the debt exposure. Franklin, UTI are the other mutual funds that have debt exposure to Yes Bank. While Franklin has an exposure of Rs 1,806 crore, UTI MF has an debt exposure of Rs 336.67 crore.
After the RBI's announcement, Nippon has marked down the value of all the bonds that they hold with Yes Bank to zero. They have also restricted the fresh subscription to about Rs 2 lakh per investors. Experts say they are hoping that more mutual funds may come out and take this route as side pocketing is not a viable option in this case.
First Published: Mar 6, 2020 12:43 PM IST
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