YES bank crisis – good, bad & ugly!

Shares of Yes Bank dropped 54.89%% on Friday, while Nifty50 and Sensex fell by 2.48% and 2.32% respectively on the last trading day of the week, ending the week in the red. This move comes after the RBI imposed a moratorium on Yes Bank and restricted the withdrawal limit to Rs 50,000 per depositor.  RBI  announced a draft scheme of reconstruction of Yes Bank with SBI and LIC leading an investment consortium to bailout the bank.

From what we know so far,

The good

1/ Your deposits are safe. “I want to assure every depositor’s money is safe, and I’m in constant touch with RBI” – Finance Minister Nirmala Sitharaman

2/ Just to be absolutely clear, so are your FD’s in Yes bank.

 

The bad

1/ You can only withdraw Rs 50,000 from your Yes bank account. This will cause some short term pain to depositors.

2/ A large part of UPI infrastructure was dependent on Yes bank. We expect this to be up and running in a few days at most. Startups can and will work round the clock until this is fixed. 

3/ If your SIP mandate is linked to a Yes bank account, your SIPs will likely fail till this situation is resolved. Please update your SIP and mandate on Kuvera to another bank, if you can do so. 

 

The ugly

1/ The restructuring involves marking Yes banks perpetual bonds to zero. These are the bonds that were held by credit funds. Most of them have already taken a write-down in NAV to reflect this.

2/ The lack of empathy on how this has been handled so far. RBI and FinMin could have formed a scheme first and then announced it for a smoother transition.

3/ Yes bank stock. It will continue to be volatile. Do you know section 45 of the Banking Regulation? Section 35A of the Act ibid? India’s bankruptcy code? If you don’t, do not touch Yes bank stock with a barge pole.

 

 

Index Returns

Index 1W 1Y 3Y
NIFTY 50 -1.9% -0.6% 7.0%
NIFTY NEXT 50 -0.7% -4.6% 2.8%
S&P BSE SENSEX -1.9% 2.6% 9.0%
S&P BSE SmallCap -2.8% -8.4% -0.8%
S&P BSE MidCap -2.6% -4.3% 1.8%
NASDAQ 100 0.8% 19.8% 16.7%
S&P 500 0.6% 7.2% 7.8%

Source: BSE / NSE

 

Top 5 best performing funds

Name 1W 1Y 3Y
Edelweiss Greater China Equity… 6.5% 20.8% 18.7%
Axis Gold 6.1% 31.6% 11.9%
Franklin India Floating Rate 5.3% 7.7% 6.8%
IDBI Gold 5.1% 30.8% 11.3%
HDFC Gold 4.8% 30.8% 12.2%

Source: Kuvera.in

 

Top 5 worst performing funds

Name 1W 1Y 3Y
Nippon India Strategic Debt -25.1% -2.7% 3.5%
IDBI Credit Risk -12.2% -3.8% 2.9%
Nippon India Equity Hybrid -12.1% -3.7% 4.0%
Nippon India Credit Risk -11.7% 1.6% 5.5%
Nippon India Equity Saving -9.7% -10.2% 0.9%

Source: Kuvera.in

 

What Investors Bought

We saw the most inflows in these 5 Funds –

Name 1W 1Y 3Y
Parag Parikh Long Term Equity -1.4% 7.7% 11.3%
Axis Bluechip -0.8% 18.3% 18.1%
UTI Nifty Index -1.8% 2.4% 8.9%
Kotak Standard Multicap -2.1% 7.0% 9.7%
Mirae Asset Emerging Bluechip -1.8% 11.2% 12.2%

Source: Kuvera.in

 

What Investors Sold

We saw the most outflows in these 5 Funds –

Name 1W 1Y 3Y
Franklin India Prima -2.8% 2.7% 6.0%
HDFC Balance Advantage -2.2% -1.2% 7.2%
SBI Dynamic Asset Allocation -0.1% -1.2% 6.3%
DSP Midcap -1.5% 12.1% 8.9%
Sundaram Services -3.7% 22.6% NA

Source: Kuvera.in

 

Most Watchlisted Fund

Top 5 funds added to watchlist by Kuverians

Name 1W 1Y 3Y
Axis Bluechip -0.8% 18.3% 18.1%
Axis Long Term Equity 0.4% 16.8% 15.5%
Axis Focused 25 -0.2% 18.6% 16.2%
Axis Small Cap -2.3% 29.1% 16.0%
SBI Banking & Financial Services -3.9% 17.6% 18.6%

Source: Kuvera.in

 

Top ELSS funds

Name 1W 1Y 3Y
Axis Long Term Equity 0.4% 16.8% 15.5%
IDBI Equity Advantage 0.1% 8.5% 10.0%
Aditya Birla Sun Life Tax Relief96 0.1% 3.4% 10.0%
Quant Tax 0.0% 0.2% 5.3%
Parag Parikh Tax Saver -0.9% NA NA

Source: Kuvera.in

 

Movers & Shakers

1/ ICICI Prudential Mutual Fund has announced that Anuj Tagra would be a co- fund manager under for ICICI Prudential Corporate Bond Fund scheme along with Chandni Gupta & Rahul Goswami.

2/ IDBI Mutual Fund has announced that Krithiga Rajesh has been appointed as the Investor Relations Officer of IDBI Asset Management Limited. Durga Prasad has ceased to be the Investor Relations Officer.

 

Quote of the week:

 

 

But the world is ever more interdependent. Stock markets and economies rise and fall together. Confidence is the key to prosperity. Insecurity spreads like contagion. So people crave stability and order.

: Tony Blair

 

 

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