Mutual Funds Lose Most In IndusInd Bank's Rs 18,100-Crore Market Cap Erosion
Mutual Funds, which hold 30.3% stake in IndusInd Bank, lost as much Rs 5,500 crore in value.
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Shares of IndusInd Bank Ltd. plunged in trade on Tuesday, hitting an intraday low of 25.91% at Rs 667.15 apiece. This steep fall led to the stock seeing as much as Rs 18,100-crore market capitalisation wiped off.
One of the worst shareholder groups to be impacted by this fall were mutual funds, which hold 30% shareholding in the bank.
Of the 16.29% shareholding held by promoters, amounting to 11.75 crore shares, more than half are pledged at 5.97 crore shares.
What Caused The Fall?
The heavy pressure on the counter came after the bank on Monday stated it had identified accounting discrepancies of 2.35% of the bank’s net worth as of December 2024 in its derivatives portfolio. This information came during an internal review, for which the lender has appointed an external agency to independently review and validate its internal findings.
This marked the second negative event for the company in less than a week. The first one came in over the weekend, when the company informed that its CEO had got a tenure extension of just one year, against the request for a three-year extension.
Loss In Shareholder Value
As per the December 2024 shareholding pattern, mutual funds hold 30.3% stake in IndusInd Bank. This implies a market cap loss of as much as Rs 5,500 crore.
Another group of shareholders that the weakness has impacted are FIIs, who hold 24.7% stake in the bank.
Mutual Funds See Heavy Loss In Value
As per data collated by NDTV Profit, 35 asset management companies own stake in IndusInd Bank as of February 2025. This stake was valued at Rs 20,700 crore.
As per BSE, funds that held over 3% stake in the company were ICICI Prudential India Opportunities Fund, SBI Nifty 50 ETF, HDFC Trustee Company Ltd. A/C HDFC Top 100 Fund and UTI Large Cap Fund.
