IndusInd Bank has been in the spotlight after its stock plummeted by 27%, hitting a fresh 52-week low of ₹720.50. The decline came after the bank disclosed discrepancies in its forex derivatives portfolio, triggering massive sell-offs. This sharp fall has impacted several mutual funds, which held substantial stakes in the bank. In this article, we analyze the mutual funds with the highest exposure to IndusInd Bank and how much they have lost.
What Went Wrong with IndusInd Bank?
The stock crash was primarily due to an accounting discrepancy in its forex derivatives portfolio, which resulted in a significant hit to its net worth. The bank admitted that the adverse impact was around 2.4% of its net worth. This revelation led to multiple brokerage downgrades, further intensifying the sell-off.
Mutual Fund AMCs with Highest Exposure to IndusInd Bank
As of February 28, 2025, mutual funds collectively held approximately 20.08 crore shares of IndusInd Bank, with a total market value of ₹19,884 crore. However, after the stock crash, the value has declined sharply.
Top 5 AMCs with Over ₹1,000 Crore Exposure:
- ICICI Prudential Mutual Fund – ₹3,778 crore (3.81 crore shares)
- SBI Mutual Fund – ₹3,047 crore (3.07 crore shares)
- HDFC Mutual Fund – ₹2,773 crore
- UTI Mutual Fund – ₹2,447 crore
- Nippon India Mutual Fund – ₹2,121 crore (2.14 crore shares)
Other Notable AMCs:
- Kotak Mutual Fund – ₹522 crore
- Tata Mutual Fund – ₹517 crore
- Quant Mutual Fund – ₹304.65 crore (30.77 lakh shares)
- Edelweiss Mutual Fund – ₹245 crore (24.76 lakh shares)
- DSP Mutual Fund – ₹166.29 crore (16.79 lakh shares)
- JM Mutual Fund – ₹86.63 crore
- HSBC Mutual Fund – ₹78.44 crore
- PPFAS Mutual Fund – ₹43.56 crore (4.40 lakh shares)
- Zerodha Mutual Fund – ₹2.76 crore
- WhiteOak Capital Mutual Fund – ₹1.96 crore
- Taurus Mutual Fund – ₹0.29 crore
Mutual Fund Schemes Impacted by IndusInd Bank Crash
Among the schemes, the worst-hit mutual funds include:
- SBI Nifty 50 ETF – ₹1,165 crore exposure
- HDFC Mid-Cap Opportunities Fund – ₹913 crore exposure
- HDFC Large Cap Fund – ₹611 crore exposure
- Nippon India Large Cap Fund – ₹336 crore exposure. This fund was recommended as part of one of the Best Largecap Mutual Funds to invest in 2025 earlier.
- HDFC Flexi Cap Fund – ₹247 crore exposure
- Bandhan Flexi Cap Fund – ₹136 crore exposure
- Quant Mid Cap Fund – ₹94.06 crore exposure
- Nippon India Small Cap Fund – ₹34.89 crore exposure
- Parag Parikh Flexi Cap Fund – ₹20 crore exposure. This is one of 10 Mutual Funds that fell the last in the last 6 months during the stock market correction.
Mutual Funds Lose Over ₹7,300 Crore Due to Stock Crash
Before the crash, mutual funds collectively held IndusInd Bank shares worth ₹22,339 crore as of February 28, 2025. However, post-crash, their total exposure has reduced to approximately ₹15,032 crore, indicating a collective loss of over ₹7,300 crore.
Should Mutual Fund Investors Be Worried?
For passive investors in index funds and ETFs, exposure to IndusInd Bank was unavoidable as it is a part of major indices. However, for actively managed funds, the crash has raised concerns over fund managers’ stock selection strategies. Investors should monitor their portfolio’s exposure to IndusInd Bank while nothing can be done from their side.
Conclusion
IndusInd Bank’s sudden stock crash has wiped out significant value from mutual fund portfolios. While long-term investors may wait for a potential recovery, short-term investors would see impact on their holdings. Investing in diversified mutual fund portfolio can help you to reduce the impact.
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