FPI, MF bets go wrong as Yes Bank tumbles

Mumbai: Foreign portfolio investors raised their combined stake in Yes Bank to 40.33 per cent during the January-March quarter from 36.15 per cent in December 2018, the quarterly shareholding data released by the stock exchanges showed.

It seems their bets on the private lender has gone wrong as its stock has crashed 30 per cent on Tueday.

Foreign portfolio investors once held more than 50 per cent of the 80.20 per cent of total public shareholding in the lender, next only to the promoters stake of 19.80 per cent.

Insurance companies also raised their stake in Yes Bank from 11.04 per cent to 11.10 per cent while select mutual funds also raised their stake, though overall mutual funds reduced their stake in Yes Bank from 10.16 per cent to 9.54 per cent.

Among the foreign portfolio investors, Norway's Sovereign Wealth Fund Government Pension Fund Global raised its stake in Yes Bank from 1.22 per cent to 1.55 per cent.

Among the domestic mutual funds, UTI Mutual Fund, through its various schemes, raised its stake in Yes Bank from 1.48 per cent to Rs 1.61 per cent. SBI Mutual Fund, through its various schemes, raised its stake in Yes Bank from 1.45 per cent to 1.61 per cent. HDFC Mutual Fund also raised its combined stake held through various schemes to 1.05 per cent from less than one per cent during the previous quarter.

Kotak Mutual Fund and Reliance Mutual Fund reduced their stake in Yes Bank during the fourth quarter from 1.40 per cent and 1.02 per cent to less than one per cent.

Among the insurance companies Life Insurance Corporation of India's stake changed minutely from 8.89 per cent to 8.88 per cent during the fourth quarter.

Yes Bank shares had rallied 30 per cent after the bank had made public a letter by the Reserve Bank of India (RBI) that cleared the private sector lender of any divergences in bad loan reporting practices on February 13, 2019. At that time, reacting to the positive developmen,t shares had rallied 30 per cent next day though later RBI had pulled up Yes Bank for making public its confidential report.

As the share price fell over 30 per cent on Tuesday after disappointing fourth quarter results and brokerages downgraded the stock to sell, the foreign portfolio investors may have sold a large number of shares, though exchange data didn't indicate any major selling by the foreign portfolio investors.