Among the ongoing failing in banking stocks, the exposure of fund managers to the sector has fallen down to the lowest recorded level in four years and remained at the end of August at Rs 22,744 crore. Consistent with the most recent information existing with SEBI, the investment of the mutual fund industry in banking stocks remained at Rs 22,744 crore as on 31st August, reporting for 15.7 % of their overall equity assets under management that comes to Rs 1.45 lakh crore.
This figure has been the lowest exposure of the mutual fund industry in banking shares since August 2009, while the overall value of mutual fund investment industry in the banking segment remained at Rs 22,586 crore. In December 2012 the exposure of the Mutual fund to banking stocks had increased to as towering as Rs 43,659 crore.
Market contestants attributed the drop in investment in banking shares to the general instability in the equity marketplace. Banking stocks are as well under-performing the wider market owing to liquidity pressure because of a variety of steps publicized by the Reserve Bank of India and the weakening asset quality of PSU banks, said the market analysts.