HDFC Bank Foreign Investor Holding Falls 2.43% In Q2 As Shares Remain Under Pressure
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Foreign investors reduced their holding in HDFC Bank during the September quarter, extending a decline in overseas ownership. Domestic mutual funds, meanwhile, raised their stake in the private-sector lender.
Shares of HDFC Bank were in focus on Thursday, October 8, after foreign investors reduced their stake in India's largest private-sector lender during the September quarter.
Foreign institutional investor holding in HDFC Bank fell by 2.43 percentage points to 39.39% at the end of September from 41.82% in the June quarter, according to the latest shareholding data.
The decline extends a steady reduction in foreign ownership of HDFC Bank. FII holding stood at 44.05% in March 2026 and 47.67% in December 2025, indicating that overseas investors have continued to trim their exposure to the lender through the year.
Domestic institutional ownership moved in the opposite direction. Mutual funds increased their holding in HDFC Bank to 31.88% in the September quarter from 30.62% at the end of June.
The latest shareholding data comes as HDFC Bank shares remain under pressure in 2026. The stock has fallen around 29% this year and touched a 52-week low of ₹681.90 on September 11.
HDFC Bank FII Holding Falls In September Quarter
Foreign investor ownership has declined for three consecutive quarters, falling from 47.67% in December 2025 to 44.05% in March, 41.82% in June and 39.39% at the end of September.
The number of foreign institutional investors holding HDFC Bank shares also declined to 3,465 in the September quarter from 3,560 in the previous quarter.
Mutual funds, however, continued to increase their exposure. Their holding rose to 31.88% from 30.62%, while the number of mutual fund schemes holding the stock increased to 769 from 748.
The change comes against the backdrop of broader foreign selling in Indian equities. Foreign portfolio investors sold ₹21,745 crore worth of Indian shares in the second half of September after ₹14,116 crore of selling in the first half, with financial stocks among the sectors facing outflows.
HDFC Bank Shares Down 29% In 2026
HDFC Bank shares have remained under pressure this year despite recent developments around the lender's leadership and business growth.
The stock touched a 31-month low of ₹681.90 on September 11 and is down around 29% in 2026. HDFC Bank recently appointed Anup Bagchi as its next managing director and chief executive officer. He will succeed Sashidhar Jagdishan after his current term ends later this month.
The lender has also reported 18.8% year-on-year growth in deposits and a 16.3% increase in gross advances for the September quarter.
Investor attention will next turn to HDFC Bank's Q2 FY27 results, scheduled for October 17, for further cues on growth, margins and asset quality.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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