DHFL mess may trigger another wave of problems in debt funds
With DHFL group companies’ debt mess coming under lens, global brokerage Credit Suisse has warned that it could trigger a second wave of risk aversion in India’s debt fund industry. Earlier, India’s debt mart faced a major risk aversion during September-October following a debt default by the IL&FS group. The DHFL debt mess is expected to have a resonating effect as the company is among the larger borrowers from mutual funds (MFs) and their aggregate exposure stood at around Rs 8,500 crore as of December 2018, the brokerage said. The banking sector’s exposure to DHFL group was about 40bps, it said.
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