On March 11, 2025, IndusInd Bank's stock experienced a massive 27% decline, dropping to ₹655.95. This sharp fall has raised concerns for investors, particularly mutual funds holding stakes in IndusInd Bank.
Mutual Funds with Exposure to IndusInd Bank
Here is a comprehensive list of mutual funds that have invested in IndusInd Bank, along with their holdings in December 2024 vs. September 2024 and the percentage increase or decrease in their stake:
| Mutual Fund | % Holding (Dec-24) | % Holding (Sep-24) | % Change |
|---|---|---|---|
| ICICI Prudential Mutual Fund | 4.693% | 2.513% | 87% |
| SBI Mutual Fund | 4.009% | 4.094% | -2% |
| HDFC Mutual Fund | 3.898% | 3.009% | 30% |
| UTI Mutual Fund | 3.31% | 2.74% | 21% |
| Nippon India Mutual Fund | 2.739% | 1.786% | 53% |
| Aditya Birla Sun Life Mutual Fund | 1.186% | 0.919% | 29% |
| Bandhan Mutual Fund | 1.164% | 0.686% | 70% |
| Kotak Mahindra Mutual Fund | 1.155% | 0.903% | 28% |
| Franklin Templeton Mutual Fund | 1.039% | 1.249% | -17% |
| Tata Mutual Fund | 0.911% | 0.588% | 55% |
| Mirae Asset Mutual Fund | 0.819% | 0.615% | 33% |
| Invesco Mutual Fund | 0.725% | 0.127% | 471% |
| Sundaram Mutual Fund | 0.512% | 0.333% | 54% |
| Edelweiss Mutual Fund | 0.402% | 0.341% | 18% |
| Axis Mutual Fund | 0.344% | 0.166% | 107% |
| DSP Mutual Fund | 0.324% | 0.206% | 57% |
| HSBC Mutual Fund | 0.177% | 0.051% | 247% |
| Mahindra Manulife Mutual Fund | 0.171% | 0.148% | 16% |
| PPFAS Mutual Fund | 0.095% | 0.048% | 98% |
| Motilal Oswal Mutual Fund | 0.079% | 0.072% | 10% |
Note: The percentage change represents the shift in holdings between September 2024 and December 2024.
Reasons Behind the 27% Drop in IndusInd Bank's Stock
Accounting Issues in Forex Derivatives Segment:The bank disclosed accounting discrepancies in its foreign exchange derivatives portfolio.Analysts estimate a potential ₹15-₹20 billion ($171-$229 million) one-time earnings impact, triggering panic selling.Trading volume skyrocketed to 4.2 million shares, significantly higher than the 50-day average of 136,408.This indicates that large institutional investors may have been offloading their positions.
Impact on Mutual Funds
- Mutual funds holding significant stakes in IndusInd Bank will likely see a decline in their Net Asset Value (NAV).
- Funds such as ICICI Prudential, HDFC, and Axis Mutual Fund that increased their holdings may face short-term negative returns.
- Portfolio managers may re-evaluate their risk exposure to avoid further drawdowns.
Disclaimer
The information provided in this article is for educational purposes only and should not be considered as financial advice. Investing in the stock market involves risks. Investors should conduct their research or consult a financial advisor before making investment decisions.