Mutual Funds Buy ₹17,250 Crore Of HDFC Bank Shares Amid March Selloff

Mutual funds bought ₹17,250 crore worth of HDFC Bank shares in March 2026, taking advantage of a sharp correction in the stock, which declined over 17.5% during the month, according to shareholding data.

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This was the sharpest decline that HDFC Bank had seen in a month since March 2020, continuing a run of losses spanning four consecutive months. The stock has fallen nearly 20% so far in 2026.

As per data from ACE MF, 49 mutual funds collectively held 380.81 crore shares of HDFC Bank worth ₹2.79 lakh crore at the end of March, compared with 360 crore shares worth ₹3.19 lakh crore in February.

Top Mutual Fund Buyers

Among major buyers, ICICI Prudential Mutual Fund purchased shares worth ₹5,073 crore during March. Following SBI Mutual Fund and Nippon India Mutual Fund purchased shares valued at ₹2,706 crore and ₹2,145 crore, respectively.

As of March-end, ICICI Prudential Mutual Fund held HDFC Bank shares valued at ₹42,626 crore, while SBI Mutual Fund held ₹60,646 crore and Nippon India Mutual Fund held ₹24,429 crore worth of shares.

Other mutual fund buyers included Parag Parikh Flexi Cap Fund, UTI Mutual Fund, HDFC Mutual Fund, and DSP Mutual Fund, which bought shares worth ₹2,037 crore, ₹1,089 crore, ₹1,075 crore, and ₹822 crore, respectively. Additional purchases were reported from Aditya Birla Sun Life Mutual Fund, Tata Mutual Fund, Edelweiss Mutual Fund, Canara Robeco Mutual Fund, and Mirae Asset Mutual Fund.

FII Selling And Domestic Buying

The Foreign Institutional Investors decreased their holding by 3.6%, disposing of 47.95 crore stocks. The holding of the Foreign Institutional Investors was decreased to 44.05% as on 2026 March from 47.67% in the last quarter, and it is the third successive quarter that their holdings have decreased.

In contrast, domestic institutional investors increased their exposure. Mutual funds raised their stake for the fifth straight quarter to 29.54% from 26.66%, acquiring around 38.67 crore shares worth ₹28,293 crore during the quarter.

Provident funds also purchased shares worth ₹2,239 crore, while insurance companies added approximately ₹256 crore worth of shares during the same period.

Reason Behind The Decline

The stock came under pressure after the resignation of part-time chairman Atanu Chakraborty. The bank stated that no specific reasons were provided for the resignation despite seeking clarification and confirmed that there were no operational issues or internal conflicts within the board or management.

The movement in institutional holdings during March reflects a shift, with domestic investors increasing exposure while foreign investors trimmed their positions amid the stock’s correction.