Mumbai: With 28 fund houses having an exposure of around 31 bln rupees to YES Bank through equity and debt, the domestic mutual fund industry is staring at a sharp reduction in net asset values of various schemes.
The Reserve Bank of India's decision to supersede the board of the lender late Thursday and the government's move to curb deposits has spooked investors and threatens to spark a contagion in the country's financial system.
Of the 31 bln rupees, 24 fund houses own shares of the lender worth 2.7 bln rupees, while the rest of the amount is held through debt schemes.
According to fund aggregator and advisory firm Morningstar India, a total of 11 fund houses have exposure to the debt securities of YES Bank through 30 schemes to the tune of 28.19 bln rupees as on Jan 31.
The asset management companies have not disclosed the February numbers.
Of the total equity holdings, SBI Mutual Fund and HDFC Mutual Fund have the highest number of shares of the lender. Interestingly, SBI Mutual Fund holds the highest shares through passive funds, while HDFC Mutual Fund holds the highest through active funds.
Today, shares of YES Bank nosedived 85% to hit their lowest level ever of 5.65 rupees as panic-stricken investors dumped the stock. At 1405 IST, shares of the lender were 51.8% down at 17.75 rupees on the National Stock Exchange.
Among debt holdings, Nippon India Mutual Fund has the highest exposure to the lender at around 18 bln rupees. However, the fund house marked down its entire exposure to the perpetual bonds of YES Bank, held through six schemes.
After Nippon India Mutual Fund, Franklin Templeton Mutual Fund and UTI Mutual Fund have the highest exposure at 4.76 bln rupees and 3.36 bln rupees, respectively.
