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Quantitative cap on MF investments needed: Union Bank

Union Bank of India had restricted investments into mutual funds (MFs) but has not yet exited them, and was in favour of quantitative restrictions on investments by banks, said Executive Director S Raman today. - Net MF inflows decline 68% in November - MF inflows dip by 68% in Nov to Rs 45,124 cr - New MFs to look beyond cities - Details of bank staff pay hike in 90 days - A year on, mobile banking yet to buzz - Withdrawals from ELSS before 3 yrs “The returns are less than 5 per cent, which is not great. I believe the Reserve Bank of India (RBI) should employ some quantitative restriction on banks’ investments in mutual funds,” he told in an interview today. Referring to banks’ investments in MFs, which, in turn, are lent to corporates, Raman said, credit offtake figures were being distorted by this circuitous lending. RBI had expressed concerns about banks’ investments in MFs and bank credit being routed to companies. It is estimated that banks have been investing over Rs 1 lakh crore into MF schemes due to the liquidity overhang.

Quick Payday Loans commented:

The union banks have decided the right thing as there is seriously the need for the quntitative funds

06.08.2011

Personal credit commented:

Quantative funds are the need of hour this time and therefore they want them so desperately

07.09.2011

loans for people with bad credit commented:

Well I believe the Reserve Bank of India (RBI) should employ some quantitative restriction on banks’ investments in mutual funds,

28.09.2011

Family Offices Singapore commented:

Probably the best i have read in this topic. Thanks a ton and looking forward for more from you.

21.04.2012


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