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.
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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.
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