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Last Updated : Dec 02, 2019 06:50 PM IST | Source:

SBI MF writes off 100% percent exposure to Reliance Home Finance

SBI MF Debt schemes had an AUM of Rs 114,792.7 crore as on October 30, 2019.

Representative image
Representative image

SBI Mutual Fund has written off 100 percent exposure to Reliance Home Finance in 12 of its debt schemes.

With SBI Mutual Fund now writing off Rs 200 crore or 25 percent, the total amount written off is Rs 800 crore.

In June this year, the fund house had written off 75 percent of its exposure to the paper in question.


SBI Mutual Fund in a public notice stated that Reliance Home Finance continued to default on its payment obligations and no resolution has been finalised under an Inter Creditor Agreement (ICA) framework.

As oof October-end, SBI MF's debt schemes had an AUM of Rs 114,792.7 crore.

In June, Reliance Home Finance had missed payment towards maturing non-convertible debentures (NCDs) worth Rs 400 crore to Reliance Mutual Fund on June 28, and on June 29, the NCD was extended by four months till October 31.

Rating agencies had revised credit ratings of certain debt instruments of Reliance Home Finance in June to ‘default’, or D, grade on concerns over the group’s deteriorating financial profile.

Reliance Home Finance also notified of the extension in a separate press release, adding that it was done to address a timing mismatch from the receipt of proceeds from an ongoing asset monetization of retail pools of the company.

Chairman Ajay Tyagi has reiterated several times that the regulator does not recognise any standstill agreement between mutual fund companies and mutual fund houses.

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First Published on Dec 2, 2019 06:50 pm
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