Amid Paytm Bank fiasco, here’s the list of mutual funds with stakes in Vijay Shekhar Sharma’s fintech company | Top Vip News

Paytm Bank fiasco: Mutual fund industry’s collective exposure to One97 Communication Ltd (Paytm) stands at $1,995 crore as of December 31, 2023, representing just 0.06% of the total equity assets under management (AUM), brokerage Fisdom Research highlighted in a recent note.

In the report, the brokerage highlighted that out of 23 AMCs, only 19 invested in (Paytm), while the remaining 9 have no exposure to Paytm through their active mutual funds.

It further noted that among asset management companies (AMCs) that had exposure to equities, none exceeded 2% of their equity AUM in any case.

AMC with exposure to One97 Communications Ltd. (Paytm)

Helios -2.0%

Mirae- 0.7%

Mahindra- 0.6%

Bajaj- 0.5%

Quantitative- 0.4%

As per the report, 19 AMCs without 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, Confidence, Whiteoak.

Equity funds with highest allocation to Paytm

The equity funds with the highest allocation to One97 Communications Ltd. (Paytm), as stated in the report, are Mirae Asset Large Cap Fund, Mirae Asset-Focused Fund, Quant Mid Cap Fund, Nippon India Large Cap Fund and Mirae Asset ELSS Tax Saver Fund.

Equity funds with lower allocation to Paytm

The equity funds with the lowest allocation to One97 Communications Ltd. (Paytm), as stated in the report, are: JM Value Fund, Mahindra Manulife ELSS Tax Saver Fund, Bajaj Finserv Flexi Cap Fund, HDFC Large and MidCap Fund , Mahindra Manulife Flexi Cap Fund.

Sector/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: Nippon India Banking & Financial Services Fund, Nippon India Innovation Fund, Aditya Birla SL Digital India Fund, UTI Innovation Fund, Franklin India Technology Background.

Sector/thematic funds with lowest allocation to Paytm

The sector/thematic funds with the lowest allocation to One97 Communications Ltd. (Paytm), as stated in the Fisdom Research report, 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.

Paytm price accumulates 36% from January 31 to February 2

Paytm faced a significant setback when the Reserve Bank of India (RBI) stepped in to enforce restrictions on its payments bank due to rule violations. As a result of this announcement, the company’s shares suffered a sharp drop of 36% from January 31 to February 2, 2024.

Paytm Payments Bank asked to stop services by end of February

On January 31, the Reserve Bank of India (RBI) directed Paytm Payments Bank Ltd (PPBL) not to onboard new customers and also not carry out any further deposits or credit transactions after February 29 this year.

“The bank should not provide any other banking services apart from those… like fund transfers (irrespective of the name and nature of services like AEPS, IMPS, etc.), BBPOU and UPI after February 29, 2024 “said the RBI. .

“The company expects this action to have the worst possible impact of $300-500 crore in its annual EBITDA going forward,” Paytm said in a regulatory filing on February 1.

The central bank said in a statement that the direction is due to persistent non-compliance and continued material supervisory concerns.

According to several media reports, concerns over money laundering and questionable deals running into hundreds of millions of rupees between popular wallet Paytm and its lesser-known banking arm led to the announcement of a ban on PPBL by the central bank.

Disclaimer: The opinions and recommendations above are those of individual analysts or brokerage firms, and not those of Mint. We advise investors to consult certified experts before making any investment decisions.