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UTI: The Secret of Failure

The truth is out. Our most recent number crunching of the latest portfolio of all domestic funds of UTI reveals the sticky holdings. Check out for the comprehensive list of NPAs and illiquid stocks.

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The truth is out. Our most recent number crunching of the latest portfolio of all domestic funds of UTI reveals the sticky holdings. The non-performing assets make up for Rs 2671 crore or nearly 8% of the total assets of Rs 34,000 crore. The steel sector has proved to be UTI's nemesis, forming a formidable 52% of total NPAs at Rs 1395 crore. The study excludes UTI's flagship US-64 for want of complete portfolio disclosure and overseas & venture capital funds. On the other hand, investments in illiquid stocks is far lower at Rs 108 crore. Here, Geekay Exim leads the pack where UTI has an investment of Rs 10.05 crore.



UTI's Top Ten Junk Stocks
  " As on June 30, 2001"  
Company  Value (Rs. Cr)  % of Total
GEEKAY EXIM (INDIA) LTD. 10.05 9.24
BALAJI DISTILLERIES LTD. 7.99 7.35
SICOM LTD. 4.82 4.43
DIWAN HSG FIN SERVICES LTD 4.60 4.23
MTZ POLFILMS LTD. 4.48 4.12
THE DHAR TEXTILE MILLS LTD. 4.30 3.95
J B F INDUSTRIES LTD. 4.14 3.81
INFRASTRUCTURE LEASING & FIN. 2.94 2.70
TRIVENI ENGINEERING & IND LTD 2.89 2.66
MALWA COTTON SPG. MILLS LTD. 2.80 2.57
Total  108.74  

Click here for comprehensive list of Junk Stocks

That the mutual fund has been run as a development financial institution is amply evident. The Essar group has proved to be UTI's Achilles' heel with four companies - Essar Steel, HY Grade Pellets, Essar Shipping and Essar Oil making up for 30% or Rs 798 crore of total NPAs. The bulk of the junk paper here comes from Essar Steel. The next in line is the Jindal family, with a cumulative NPA of 11.91% or Rs 318 crore.

UTI's Top Ten Junk Bonds
  " As on June 30, 2001"  
Company  Value (Rs Cr)  % of Total
ESSAR STEEL LIMITED 479.55 17.95
JINDAL VIJAYNAGAR STEEL 252.24 9.44
ISPAT INDUSTRIES LIMITED 219.20 8.21
HY GRADE PELLETS LIMITED 213.30 7.98
MALVIKA STEEL LIMITED 177.83 6.66
OSWAL CHEMICALS & FERTS 79.14 2.96
C E S C LTD. 78.14 2.93
MUKAND LTD. 74.29 2.78
ESSAR SHIPPING LTD 73.89 2.77
JINDAL IRON & STEEL CO 65.85 2.47
Total   2,671  

Click here for comprehensive list of Junk Bonds