IndusInd Bank stock: ICICI Pru Mutual Fund, SBI MF, HDFC MF collectively hold 9.68 cr shares; check details

Shares of the private lender IndusInd Bank Ltd. experienced a 26% decline on Tuesday. This was in response to additional analysts who cover the lender issuing downgrades and revising their price target on the stock. This followed the bank revealing another unfavorable development on Monday, March 10, to the exchanges.

Following the recent fall, mutual fund investments in IndusInd Bank have experienced a significant decrease of over Rs 6,000 crore on March 11. This sharp decline came after the bank revealed a 2.4% impact on its net worth due to alterations in the valuation of derivative transactions.

In February 2025, 35 mutual funds collectively held more than 20.88 crore shares of IndusInd Bank, according to data from Ace Equities. The total value of these holdings was Rs 20,670 crore, but has now fallen to Rs 14,600 crore following the recent correction in the stock market.

Among these mutual funds, ICICI Prudential MF holds the largest stake valued at Rs 3,779 crore, followed by HDFC MF at Rs 3,564 crore and SBI MF at Rs 3,048 crore. Other significant holders include UTI, Nippon India, Bandhan, and Franklin Templeton MFs, with investments ranging from Rs 740 crore to Rs 2,447 crore.

> ICICI Prudential MF: Rs 3,779 crore; 3.81 crore shares
> HDFC MF: Rs 3,564 crore; 2.8 crore shares
> SBI MF: Rs 3,048 crore; 3.07 crore shares

As of February 28, 2025, Kotak Mutual Fund and Tata Mutual Fund held shares valued at Rs 522 crore and Rs 517 crore, respectively. Quant Mutual Fund had approximately 30.77 lakh shares in its portfolio, totaling Rs 304.65 crore.

Edelweiss Mutual Fund owned 24.76 lakh shares of IndusInd Bank worth Rs 245 crore, while DSP Mutual Fund had 16.79 lakh shares valued at Rs 166.29 crore.

Nineteen Asset Management Companies had exposure of less than Rs 100 crore each. JM Mutual Fund and HSBC Mutual Fund had exposures of Rs 86.63 crore and Rs 78.44 crore, respectively. PPFAS Mutual Fund had around 4.40 lakh shares in its portfolio, amounting to Rs 43.56 crore.

Zerodha Mutual Fund and WhiteOak Capital Mutual Fund held shares valued at Rs 2.76 crore and Rs 1.96 crore, respectively, as of February.

IndusInd shares

IndusInd Bank's recent disclosure of a 2.35% decrease in net worth stemming from irregularities in its derivative transactions has rekindled apprehensions regarding risk factors within the banking industry. The deviation is attributed to the bank's failure to adhere to the Reserve Bank of India (RBI) guidelines on derivatives, which came into effect in April 2024.

The recent disclosure has once again raised apprehensions regarding the inherent dangers associated with banking, a subject that has been consistently underscored by Devina Mehra, the Founder & CMD of First Global.

Mehra, in a post on social media X, explained: "I am a nervous investor in banks and lenders", here's the answer!"

Mehra highlighted how banks do not benefit proportionally when their borrowers succeed but take direct hits when things go wrong. She stated that this discrepancy results in delayed challenges that often surprise investors, making banking a sector prone to long-term issues.

"It is in the structure of the business where negative surprises will ALWAYS outweigh positive surprises. When banks lend and their customer does very well, unlike equity investors they do not get any extra income. In fact, on the margin they may well have to reduce interest rates. On the other hand, when something goes wrong with the borrower, the bank has to take a hit. This is one business where higher than expected growth may not be a good thing at all except that you come to know of the problems created only some years later. Add to it, the risk of losses on highly leveraged positions (because a bank is inherently a leveraged institution) and this can deal a blow sometimes a fatal one to a bank - after all a single trader took down the 200 year old Barings Bank and a couple of years ago the Silicon Valley Bank's troubles also arose out of their bond book, rather than credit. It is at the end of the day, a highly leveraged precarious business. More important, as an outside investor, you never know where the problems are hiding in either the credit or the trading book. So yes, हम तो डर डर कर ही निवेश करते हैं।"

The current challenges facing IndusInd Bank are due to discrepancies in derivative trades, rather than troubled loans. However, this situation highlights the fact that banks regularly encounter risks that may not be readily apparent to investors. This recent occurrence further supports Mehra's view that the banking sector is inherently delicate, with unexpected events capable of quickly undermining investor trust.