IndusInd Bank shares tumbled over 27% on Tuesday after the bank disclosed an adverse impact of 2.4% on its net worth due to some “discrepancies” in certain portfolios. This massive erosion in its stock valuation has further hit mutual funds’ holdings in the bank.
As of February 28, as many as 50 mutual funds collectively held over 22.56 crore shares of IndusInd Bank, according to Trendlyne.com.
The value of these MF holdings stood at Rs 22,339 crore as of February 28. Their exposure, however, has now declined to about Rs 15,000 crore during the month so far, a slide of about Rs 7,339 crore.
IndusInd Bank shares crashed over 27.40% to trade at Rs 653.85 apiece on the BSE at 1453 hours on Tuesday.
Also read: Are your bank deposits safe? Concerns rise amid IndusInd Bank saga
Worst-hit mutual funds in IndusInd Bank stock crash
UTI Nifty 50 Exchange Traded Fund
Shares held as of February 28, 2024: 35.94 lakh
Loss: Rs 120 crore
UTI Value fund Fund-Regular Plan Growth
Shares held as of February 28, 2024: 19 lakh
Loss: Rs 63.46 crore
UTI Nifty Bank Exchange Traded Fund
Shares held as of February 28, 2024: 15.78 lakh
Loss: Rs 52.70 crore
Bandhan Flexi Cap Fund Growth
Shares held as of February 28, 2024: 13.80 lakh
Loss: Rs 46.09 crore
UTI Mid Cap Fund Regular Plan Growth
Shares held as of February 28, 2024: 13.27 lakh
Loss: Rs 44.32 crore
MF house with highest exposure to IndusInd Bank shares
UTI Mutual Fund: The fund house holds around 1.27 crore shares of the bank through 15 of its mutual fund schemes, according to Trendline.com. Other fund houses with significant exposure in the bank include Bandhan Mutual Fund, Quant Mutual Fund, Motilal Oswal Mutual Fund, LIC Mutual Fund, Sundaram Mutual Fund, Invesco India Mutual Fund, etc.
Mutual funds raise investment quarter-on-quarter
Mutual funds have raised their stake in IndusInd Bank on a quarter-by-quarter basis. By the end of the December quarter, mutual funds had a stake of 30.31% in the bank, which was 22.73% a quarter ago. Their stake in the bank was 19.91% in the June quarter 2024, 17.82% in the March quarter 2024 and 15.63% in the December quarter 2023.
Also read: IndusInd Bank promoter plays down discrepancies; says “nothing wrong with management”
Massive sell-off in IndusInd Bank stock
The sell-off in the bank stock on Tuesday was triggered by the lender’s internal review estimating an adverse post-tax impact of 2.35% in its net worth as of December 2024. This disclosure came after the RBI directed banks to conduct a thorough review of their investment portfolio.
