IndusInd Bank Sees Shareholding Pattern Change — FPIs, Mutual Funds Swap Positions Amid Turbulence
IndusInd Bank's shareholding pattern over the last four quarters reveals an interesting trend in how large institutions positioned their stake.
Battling crisis after crisis, IndusInd Bank Ltd. has seen investor interest swing between foreign and domestic institutions in the last 12 months. What began as a seemingly isolated derivatives trading discrepancy snowballed into a multi-layered crisis involving leadership resignations, forensic investigations, insider trading probes, and a growing trust deficit.
A look at the public shareholding pattern over the last four quarters reveals an interesting trend—mutual funds that had been buying through the second half of 2024 turned sellers in the first half of 2025, while foreign portfolio investors (FPIs) did the opposite.
Shareholding patterns on the stock exchanges are updated on a quarterly basis.
Mutual funds owned 22.73% equity in IndusInd Bank at the end of the September quarter of 2024. The following quarter (Dec. end), their stake went up to 30.31%.
Then, when accounting discrepancies surfaced in mid-March, the share sale happened. By the end of the quarter, mutual funds' stake slipped to 27.55%, which further declined to 25.36% by June-end.
On the other hand, FPIs' holdings dropped from over 34% in September 2024 to just under 25% by the end of 2024. As the stock took a hit in March, the stake jumped to nearly 30% and then climbed to over 33%.
The April-June period saw exits in top management. Besides, IndusInd Bank's internal probes revealed more rot in its accounts.
Consequently, the fourth quarter results fared poorly. IndusInd Bank posted a net loss of Rs 2,329 crore for the quarter ended March 31, 2025, compared to a net profit of Rs 2,349 crore in the same period in FY24.
In late May, market regulator SEBI barred former CEO Sumant Kathpalia and four other current and former bank officials from the securities market.
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A timeline of IndusInd Bank crisis between March and May 2025. (Image: NDTV Profit)
Between July 2024 and June 2025, IndusInd Bank shares plunged 40% while the NSE Nifty Private Bank index gained nearly 8%.
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Notably, the shareholding of retail investors had a more erratic trend. While it rose in December and March, holdings fell in June.
As per the latest available data on the BSE, IndusInd Bank shareholder count rose by 70% in the last year to 6.72 lakh retail investors owning an 8.05% stake. While retail holdings may have declined marginally, retail investors entered the stock in expectation of a turnaround.
IndusInd Bank is set to declare its financial results for the quarter ended June 30 on Monday.
The board has submitted names of potential candidates for CEO to the RBI, and the central bank is expected to clear the name of the next CEO. Sources indicated to NDTV Profit that the announcement of the new CEO may be coming soon.
A committee of two senior executives who are managing the bank in the absence of a full-time CEO has been granted time till Aug. 28. The original deadline for the committee was set for July 28.
Read the IndusInd Bank Q1 Preview here.
