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Equity fund managers have taken a "U" turn as far their investment in India's largest lender State Bank of India (SBI) is considered. Investors took a 'sell' call on the counter as SBI disappointed streets with its Q4 numbers.
With a steep fall of 17% in last few trading sessions of the month of May (especially after the state owned bank announced its Q4 numbers), India's largest equity schemes, which control a healthy chunk of equity assets, prune their holdings by as high as a percentage point in some cases.
For instance, several schemes of sector's giant HDFC Mutual Fund had SBI as their top pick with exposure to as high as close to 9% in April. However, in May amid volatile trend during which shares of SBI lost about 10% of their values, the holdings stood cut.
Fading hopes of immediate rate cuts and uncomfortable levels of non-performing assets (NPAs) are bearing impact on the banking sector in general. PSU banks had long been under pressure. Recently, stocks of SBI even dipped below Rs 2,000 mark before bouncing back.
IDFC's Premier Equity scheme cut its holding the sharpest on the counter by little over a percentage point to 3.61% from 4.66%.
On Thursday, shares of SBI closed strong in weak market session at Rs 2,019.8, up 0.49% or Rs 9.75. The state-owned bank had announced a dividend of Rs 41.5 a share, payable on 17 June, 2013.
