HDFC Bank saw its worst sell-off since Covid-19 on Thursday, causing a sharp drop in the Net Asset Values (NAVs) of several mutual funds. The decline followed the resignation of HDFC Bank Chairman Atanu Chakraborty over ethical concerns, which triggered a fall of more than 5 per cent in the stock.
As of the third quarter ending December, mutual funds collectively held 26.66 per cent of HDFC Bank, according to BSE data. On February 27, the last trading day of the month, they owned 359 crore shares, representing a market capitalisation of Rs 3.19 lakh crore.
HDFC Bank shares are part of 49 mutual fund portfolios, with Large Cap and Flexi Cap funds holding up to 8 per cent of the stock in their total assets, per ACE Equity data.
Mutual funds most exposed
According to INDmoney, Parag Parikh Flexicap Fund has the highest exposure to HDFC Bank, with Rs 10,739 crore invested, accounting for 7.73 per cent of its AUM. It is followed by HDFC Flexicap (Rs 7,279 crore, 7.25 per cent) and ICICI Prudential Largecap (Rs 7,091 crore, 9.16 per cent).
ICICI Prudential Value holds Rs 4,873 crore (8.05 per cent), while HDFC Balance Advantage has Rs 4,837 crore (4.5 per cent) in HDFC Bank shares.
AMCs most impacted
Ten AMCs hold more than 10 crore shares each of HDFC Bank. SBI Mutual Fund is the largest holder with 79.47 crore shares. ICICI Prudential Mutual Fund had 51.91 crore shares in February, followed by HDFC Mutual Fund with 38.82 crore shares.
PPFAS Mutual Fund held 12.4 crore shares, Edelweiss Mutual Fund 2.97 crore, and Quant Mutual Fund 2.62 crore. WhiteOak Capital Mutual Fund had 1.64 crore shares, Helios Mutual Fund 41.29 lakh, and JioBlackRock Mutual Fund 31.72 lakh. Abakkus Mutual Fund held 18 lakh shares, while Quantum Mutual Fund had 15.29 lakh shares.