Well-capitalised private sector banks will have a good run going ahead as mutual funds will now stop supporting the adventurous lending activity of non-banking financial services companies (NBFC), said Saurabh Mukherjea, Founder, Marcellus Investment Managers.
In a move to derisk mutual funds, the Securities and Exchange Board of India has banned mutual funds from entering into standstill pacts with companies. For liquid funds, Sebi has reduced exposure to a single sector at 20 percent against 25 percent earlier, 10 percent to housing finance companies (HFCs) against 15 percent, 5 percent additional to securitised retail home loans and affordable home loans.
The move will create a bigger opening for banks as the MFs stop pretending that they are banks, Mukherjea said in an interview with CNBC-TV18.
“The window of opportunity for well capitalised private sector banks is getting bigger and bigger. Some of them will raise fresh capital and those who already have well-capitalised balance sheets will profit immensely over the next 12 months,” said Mukherjea.
However, for the system as a whole, there would be a need for a combination of measures by both the RBI and the government together to spur credit growth, he added.