Paytm Bank debacle: Mutual fund industry-wide exposure to One97 Communication Ltd (Paytm) is INR1.995 billion as of December 31, 2023, which represents just 0.06% of total equity assets under management (AUM), brokerage firm Fizdom Research highlighted in a recent note.
The brokerage firm highlighted in its report that only 19 of the 23 AMCs have invested in (Paytm) and the remaining nine have no exposure to Paytm through active mutual funds.
Additionally, it was observed that among the asset management companies (AMCs) that had exposure to the stock, not a single company had an AUM of more than 2% of their equity in any case.
AMCs with exposure to One97 Communications Ltd. (Paytm)
Millet – 0.7%
Mahindra – 0.6%
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Amount – 0.4%
According to the report, the 19 AMCs with no exposure to Paytm are: 360 One, Axis, Bank of India, Baroda BNP Paribas, Canara Robeco, DSP, Invesco, ITI, LIC, NJ, PGIM, PPFAS, Quantum, Samco, Shriram, Sundaram, Taurus, Trust, White Oak.
Equity funds with highest allocation to Paytm
As noted in the report, the equity funds with the highest allocation to One97 Communications Ltd. (Paytm) are Mirae Asset Large Cap Fund, Mirae Asset-Focused Fund, Quant Mid Cap Fund, Nippon India Large Cap Fund, Mirae Asset ELSS Tax Saver Fund.
Equity funds with least allocation to Paytm
As noted in the report, the equity funds with the least allocation to One97 Communications Ltd. (Paytm) are JM Value Fund, Mahindra Manulife ELSS Tax Saver Fund, Bajaj Finserv Flexi Cap Fund, HDFC Large and Mid Cap Fund. , Mahindra Manulife Flexi Cap Fund.
Sectoral/thematic funds with highest allocation to Paytm
According to Fisdom Research, the sector/thematic funds with the highest allocation to One97 Communications Ltd. (Paytm) are Japan Bank of India Financial Services Fund, Japan India Innovation Fund, Aditya Birla SL Digital India Fund, UTI Innovation Fund, Franklin India Technology. Fund.
Sectoral/Thematic Funds with Lowest Allocation to Paytm
As noted in the Fisdom Research report, the sectoral/thematic funds with the lowest allocation to One97 Communications Ltd. (Paytm) are Aditya Birla SL ESG Integration Strategy Fund, Mirae Asset Banking and Financial Services Fund, Union Innovation & Opp Fund, Aditya Birla SL. Banking and Financial Services Fund, Quant Teck Fund.
From January 31st to February 2nd, Paytm prices will drop by 36%
Paytm faced a major setback after the Reserve Bank of India (RBI) stepped in to impose restrictions on payment banks for violating rules. As a result of this announcement, the company's stock price plunged 36% from January 31, 2024 to February 2, 2024.
Paytm Payments Bank directed to suspend services by end of February
On January 31, the Reserve Bank of India (RBI) ordered Paytm Payments Bank Ltd (PPBL) not to accept new customers or make any further deposits or credit transactions from February 29 this year.
“From February 29, 2024, no banking services other than banking services such as funds transfer (irrespective of the name or nature of services such as AEPS, IMPS etc.), BBPOU, UPI facilities etc. should be provided by banks.” said the RBI. .
“The company expects this action to have a worst-case impact.” INRGoing forward, annual EBITDA will be between 300 million and 500 million yen,” Paytm said in a regulatory filing on February 1.
The central bank said in a statement that the direction was based on persistent defaults and continued significant supervisory concerns.
According to various media reports, money laundering concerns and suspicious transactions worth billions of rupees between the popular wallet Paytm and a little-known banking sector led to the central bank's announcement of a ban on PPBL. Ta.
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