- HDFC Bank shares fell 5% after Atanu Chakraborty’s sudden exit as chairman
- Indian mutual funds lost nearly Rs 31,900 crore from HDFC Bank holdings
- 56 mutual funds collectively hold 23% stake in HDFC Bank with 356 crore shares
HDFC Bank's 5% fall on Thursday in the wake of Atanu Chakraborty's sudden exit as part-time chairman did not bode well for Indian mutual funds, which witnessed a wealth erosion of nearly Rs 31,900 crore through their holdings in India's biggest private lender.
This has led to a general discussion over how much exposure Indian mutual funds truly have to HDFC Bank. As things stand, the exposure of domestic institutional investors to the lender is massive. As many as 56 mutual funds own a collective 356 crore shares of the private lender, which accounts for an approximate stake of 23% of HDFC Bank.
At the beginning of March, the total value of this mutual fund stake stood at a whopping Rs 3.16 lakh. As of March 19, that valuation has plummeted to Rs 2.84 lakh crore.
The year-to-date picture highlights a grimmer reality. Since the turn of the year, the total value of mutual fund investments in HDFC Bank has tumbled by nearly Rs 72,400 crore.
ALSO READ: HDFC Bank Boardroom Change Sparks Uncertainty, But Experts Still Positive On Long-Term Value
The financial hit is heavily concentrated among some of the nation's biggest asset management companies. SBI Mutual Fund, in particular, carries the biggest exposure, holding as many as 78.9 crore shares valued at Rs 62,988 crore. ICICI Prudential Mutual Fund follows closely with holdings worth Rs 41,275 crore.
Some of the other prominent players absorbing the impact are HDFC Mutual Fund, which holds 37.2 crore shares valued at almost Rs 30,000 crore, whereas Nippon India Mutual Fund holds Rs 24,307 crore. UTI Mutual Fund and Kotak Mutual Fund also maintain significant exposure to HDFC Bank, with their current holdings valued at Rs 23,706 crore and Rs 14,266 crore, respectively.
Mirae Mutual Fund (Rs 11,457 crore), PPFAS Mutual Fund (Rs 9,899 crore), Axis Mutual Fund (Rs 9,029 crore) and Aditya Birla Sun Life Mutual Fund (Rs 8,028) round out the top 10 heavily invested AMCs.
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