However, retail shareholding has seen an increase, in a quarter, when the stock fell nearly 35%.
As per the latest shareholding pattern, IndusInd Bank promoters now own a 15.83% stake, from the 16.29% they held at the end of the December quarter.
According to a note from Nuvama Alternative & Quantitative Research, two fund houses, Kotak Mutual Fund, and Quant Mutual Fund, made a complete exit from the Mumbai-based private lender in the month of March.
Based on the shareholding pattern for December, Kotak Equity Arbitrage Fund had a 1.26% stake in IndusInd Bank, a name that does not feature in the March shareholding. Quant MFs name does not feature in either quarters, meaning they may have held less than 1% stake in the lender.
Domestic Mutual Funds now own 27.55% stake in IndusInd Bank, down from the 30.31% they held in December.
The name of Mirae Asset Largecap Fund, which did not appear in December’s shareholding, does so in March, with a 1.52% stake.
India’s largest insurance company, Life Insurance Corporation of India, now has a 5.08% stake in IndusInd Bank, marginally lower than the 5.23% it held in December.
The stake of Foreign Portfolio Investors (FPIs) in IndusInd Bank has increased to 29.53% from 24.74% in the previous quarter, although the name of Government of Singapore, who held a 1.29% stake as of December, does not appear in the latest shareholding.
Retail shareholders though, have piled into IndusInd Bank’s shares as they corrected during the quarter. These small shareholders, or those with authorised share capital of up to ₹2 lakh, now stand at 7.47 lakh, from 6.17 lakh in December. In percentage terms, that figure stands at 9.17% from 7.9% in the previous quarter.
Last month, IndusInd Bank had noted that there were some discrepancies found during its detailed internal process review, which relates to its derivative portfolio or internal positions taken to hedge forex deposits or borrowings. The findings resulted in the stock dropping 27% in a single trading session, the most on record.
In its latest filing on Tuesday, April 15, IndusInd Bank found a ₹1,979 crore hit to its net worth due to these discrepancies, equalling to 2.27% of its total net worth.
The bank will include these findings in its financial year 2025 statements.
In an interaction with CNBC-TV18 on March 11, IndusInd International Holdings’ Chairman Ashok Hinduja had said that promoters remain committed to the business and will always be there for the lender as and when fresh capital is needed.
Hinduja also mentioned back then that there were no margin calls on their pledged shares yet and that their pockets remain “very strong.” He added that their request of increasing their stake in IndusInd Bank is currently pending with the Reserve Bank of India and they will do so once they get an approval.
Shares of IndusInd Bank ended 6.7% higher on Tuesday at ₹735.5. The stock has recovered significantly from its 52-week low of ₹606.
