December 30, 2021
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Equity MFs adopt ‘wait and watch’ policy for RBL Bank shares
Fund Managers are in no hurry to take immediate decisions on their investments in RBL Bank. Various MFs have investments of around Rs 2,000 crore in RBL Bank. At present, fund houses are confident that there are no financial irregularities as yet.
On Monday, the stock of RBL Bank ended at Rs 140.9, down Rs 31.6, or 18.32 per cent, on the BSE. The stock nose divedafter Vishwavir Ahuja, its managing director (MD) and chief executive officer , went on leave and the Reserve Bank of India (RBI) appointed an executive to its board.
The data at ChanakyaMFguidance shows there are around 94 MF schemes which have invested in the stocks of RBL Bank worth Rs 1,996.34 crore as at the end-November.
At the end of November, HDFC Mid-Cap Opportunities had an exposure of Rs 239.61 crore, followed by Nippon India Multicap Fund and Kotak Flexicap Fund. There are few other MFs, which have investments in RBL Bank.
In fact, a CEO of a leading fund house indicated that MFs will be buyers of this stock at lower levels .
Fund managers also say that they would prefer Ahuja to continue to lead the bank as there will be continuity in business.
Shriram Subramanian, founder and MD of proxy advisory firm, InGovern Research Services, says the RBI could have been more forthcoming on the reason why it appointed its own man Yogesh Dayal to the board of RBL Bank.
The lack of clarity on this serious issue, spooked the markets and depositors.