FIIs Offload 4% HDFC Stake In March Quarter Amid Market Volatility

By Kotak News Desk
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07 Apr 2026 at 1:12 PM IST
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Market News
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4 minutes read

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Summary

FIIs cut HDFC Bank’s stake by 4% to 44.05% amid volatility and governance concerns after the chairman's resignation, while domestic institutions raised holdings.

Foreign Institutional Investors (FIIs) offloaded nearly a 4% stake in HDFC Bank in the March quarter of fiscal year 2025-26. FIIs sold 47.95 crore shares of the bank during the quarter, according to the latest shareholding pattern data.

HDFC Bank shares fell nearly 26.2% during the quarter, marking the steepest decline in its share price since March 2020, when the stock dropped over 33%.

The number of FIIs invested in the bank fell to 2,528 by the end of March 2026, down from 2,757 in December 2025, marking the third straight quarter of declining FII stake in the lender. FII holdings stood at 44.05% in March 2026, down from 47.67% in the previous quarter.

On Tuesday, 7 April 2026, at 12:02 pm, shares of HDFC Bank were trading at ₹767.30 apiece on the National Stock Exchange (NSE), down 0.48%.

Detailed Insights Into Buying and Selling in HDFC Bank Stock

FIIs sold the stock due to continued volatility in the market. India’s biggest insurer, the Life Insurance Corporation of India, also sold its HDFC Bank shares worth ₹969 crore during the period.

On the other hand, domestic institutional investors bought more HDFC Bank shares. Mutual funds raised their stake for the fifth straight quarter, increasing it from 26.66% to 29.54% and acquiring approximately 2.88% or 38.67 crore shares worth ₹28,293 crore during the quarter.

Meanwhile, provident funds purchased shares worth ₹2,239 crore, and insurance companies added shares worth ₹256 crore.

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Why Is HDFC Bank Stock Falling?

The stock's fall has been fueled by several factors, most notably the unexpected resignation of its former chairman. He resigned after pointing out that some developments and practices over the last two years clashed with his personal values, sparking governance concerns.

Since the leadership change in October 2020, the bank has been dealing with several challenges, including RBI actions like suspending its credit card business and the merger with HDFC Ltd, which affected growth and margins.

Sources:

Moneycontrol

NDTV Profit

Angel One

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