MFs affected by fall in RBL Bank shares
DSIJ IntelligenceCategories: Mutual Fund
The share price of RBL Bank has fallen by more than 50% from its recent peak. Read on to find how will this impact to different MF schemes.
There seems to be no end to misery of Indian equity investors. Every other day one or other company is witnessing massive fall in its value for different reasons. The latest being RBL Bank. Once tagged as one of the best banks, RBL Bank has seen its share price dropping by half in last few months. The below graph shows how drastically the stock price fell.
Share Price Movement Of RBL in Last One Year
Along with the grim outlook given by the bank’s management, what is hurting the share price of RBL is its high exposure to another beleaguered group Coffee Day Enterprise. On July 30, 27 employees of RBL Bank sold their shares in the bank soon after untimely demise of Coffee Day group founder V G Siddhartha, which is again under cloud of investigation.
Despite such a poor performance of the stock, MFs continued to show their faith in the bank and increased their holding. Currently, they hold almost 9.3 crore of shares in RBL Bank, up from 8.75 crore in the month of April 2019 and 8.91 crore in the month of June 2019.
Following are the funds that held highest number of shares of RBL Bank in their portfolio at the end of July 2019.
In terms of percentage of AUM, largest exposure has been to the following funds at the end of July 2019. Fund Name Fund Manager AUM (in Rs. cr) % of AUM IDFC Focused Equity Fund-Reg(G) Sumit Agrawal 1416.1 3.84 ICICI Pru Midcap Select ETF Kayzad Eghlim 32.3 3.77 IDBI Midcap Fund(G) Uma Venkatraman 190.2 3.75 BOI AXA Arbitrage Fund-Reg(G) Ajay Khandelwal 92.2 3.16 Invesco India Midcap Fund(G) Pranav Gokhale 451.9 3.12 L&T Large and Midcap Fund-Reg(G) Soumendra Nath Lahiri 1290.1 3.09 Edelweiss Mid Cap Fund-Reg(G) Harshad Patwardhan 847.5 2.98 UTI Banking and Financial Services Fund-Reg(G) Amit Premchandani 619.8 2.9 Motilal Oswal Multicap 35 Fund-Reg(G) Akash Singhania 12413.3 2.86 Motilal Oswal Midcap 100 ETF Swapnil P Mayekar 23 2.73