5 funds which may be hampered by PNB scam

The last three days were disappointing for Punjab National Bank (PNB). Post the discovery of the Rs. 11,000 crore scam, the stock of PNB has fallen more than 20 per cent in the last three trading sessions. According to PNB, some of the employees along with some of the customers committed fraud worth Rs. 11,400 crores. This is one of the biggest scam in the banking system which affected the stock very badly. Also, this has hampered the spirits of many retail as well as institutional investors.

To analyse the impact of this on the mutual fund industry, we have analysed the schemes which are holding the PNB stocks in their portfolio. According our data analysis, across all the categories 117 schemes has invested Rs. 3,980 crore in Punjab National Bank. However, 79 equity fund schemes hold PNB stocks which forms around Rs. 2,750 crore of investment as on January 2018. Here are some schemes which has major investment or major portion of their investment in the securities of PNB.

Above mentioned schemes are likely to be affected in the shorter term due to the fall in prices on PNB stocks. However, once the fund managers settle off this mess, these schemes will perform better. Investor should not panic and should trust their fund managers and their skills.