Paytm Bank fiasco: Sectoral/Thematic funds with the lowest allocation to Paytm are: Aditya Birla SL ESG Integration Strategy Fund, Mirae Asset Banking and Financial Services Fund, Union Innovation & Opp Fund, Aditya Birla SL Banking & Financial Services Fund, Quant Teck Fund
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Paytm Bank fiasco: The mutual fund industry’s collective exposure to One97 Communication Ltd (Paytm) stands at ₹1,995 crore as of December 31, 2023, which is only 0.06% of the total equity assets under management (AUM), highlighted brokerage house Fisdom Research 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.
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It further observed that among the asset management companies (AMCs) that had exposure to the stock, none exceeded 2% of their equity AUM in any case.
AMCs With Exposures to One97 Communications Ltd. (Paytm)
Helios -2.0%
Mirae- 0.7%
Mahindra- 0.6%
Bajaj- 0.5%
Quant- 0.4%
As per the report, 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, Whiteoak.
Equity funds with highest allocation to Paytm
Equity funds with the highest allocation to One97 Communications Ltd. (Paytm) as noted by the report 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.
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Equity funds with lowest allocation to Paytm
Equity funds with the lowest allocation to One97 Communications Ltd. (Paytm) as noted by 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.
Sectoral/Thematic funds with the highest allocation to Paytm
As per Fisdom Research, sectoral/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 Fund.
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Sectoral/Thematic funds with the lowest allocation to Paytm
Sectoral/Thematic funds with the lowest allocation to One97 Communications Ltd. (Paytm) as noted by 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 & Financial Services Fund, Quant Teck Fund.
Paytm price tanks 36% from January 31- February 2
Paytm faced a significant setback when the Reserve Bank of India (RBI) stepped in to enforce restrictions on its payment bank due to rule violations. As a result of this announcement, the company’s shares saw a sharp drop of 36% from January 31st to February 2nd, 2024.
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Paytm Payments Bank told to halt services by February-end
On January 31, the Reserve Bank of India (RBI) ordered Paytm Payments Bank Ltd (PPBL) to not onboard new customers and also not to undertake further deposits or credit transactions after February 29 this year.
“No other banking services, other than those…like fund transfers (irrespective of name and nature of services like AEPS, IMPS, etc), BBPOU and UPI facility should be provided by the bank after February 29, 2024,” RBI said.
“The company expects this action to have a worst-case impact of ₹300-500 crore on its annual EBITDA going forward,” Paytm said in a regulatory filing on 1 February.
What led to the ban on Paytm Bank by RBI?
The central bank in a statement said that the direction follows persistent non-compliance and continued material supervisory concerns.
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As per various media reports, money laundering concerns and questionable dealings of hundreds of crores 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
