Poor investment decisions and chronic underperformance have led to the Aditya Birla Group’s mutual funds business steadily losing assets under management as well as market share.
Aditya Birla Sun Life AMC has an active exposure of about Rs 1,700 crore to the Adani group’s debt, the highest among mutual fund houses in India. This, in the wake of Hindenburg Research’s scathing report on the group, should have been cause for concern.
While it is, it isn’t its biggest worry.
Days after the Hindenburg report, the asset management company announced a 11% year-on-year dip in its net profits for the quarter ended December 2022. This was primarily on the back of a 36% dip in other income, which is primarily the gains and losses on its own …
Furquan leads the banking coverage at The Morning Context. A business journalist with eight years of experience and a best-selling author, in his earlier stints as a reporter with the Deccan Herald and a columnist at The Banker, he wrote on banking, financial markets and regulatory affairs. He has extensively covered India's debt market crisis, banking crisis and the fall of Yes Bank.
Editor, Banking
furquan@mailtmc.com
Delhi