Mutual fund companies such as UTI MF, HDFC MF, and 17 others are staring at at least 15% to 20% mark-to-market losses after the rating downgrade of IDBI BankBSE 1.13 % questioned its ability to repay despite the fact that it enjoys sovereign backing.
While MFs, with an exposure of Rs 7,400 crore, argue that the bonds will be ultimately paid when they mature and interest is also not a worry, they may have to sit on securities that few are ready to touch.
