YES Bank crisis

YES Bank crisis: 22 AMCs have exposure worth ₹526 cr

YES Bank crisis: 22 AMCs have exposure worth ₹526 cr

To begin with, YES Bank has seen in the news for all the wrong reasons. Hence, mutual funds remained in the limelight for quite some time. Besides, the YES Bank remained in crisis as of Jan 30, 2020. So then, the 22 asset management companies had investments in the shares of the bank. While 11 fund houses had exposure to the bonds of the bank. 

Besides, the total investments of fund houses in the bank’s equities come about Rs 526.42 crores. While the debt exposures stood around Rs 2,819 crores. 

Despite this, on March 5th, the RBI had imposed a month-long stay on the bank. Also, it has restricted the withdrawals that customers might make from the bank’s accounts to Rs 50,000 until April 3, 2020. 

Hence, the stay came in the wake of the worsening financials of the bank. Besides, until the RBI figures out a restructuring plan, the depositors of the bank would face some hardships in accessing their funds. 

However, for the next month, YES Bank would remain led by the RBI- appointed administrator Mr. Prashant Kumar, a former finance officer at SBI.

Besides, in the equity exposures, the SBI Mutual Fund stood as the highest holding fund worth Rs 152.83 crores in the bank’s shares. Also, in the debt exposure funds, the Nippon India Mutual Fund had the highest exposure in the troubled bank’s bonds. However, four debt schemes of the invested had total investments worth Rs 1,806.28 crores in bonds of the bank. 

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