Bank stock in which mutual funds sold shares worth over ₹1,600 Cr in February

During Thursday’s trading session, the shares of a private sector bank offering microfinance, personal loans, advanced digital banking facilities, and other financial services are in focus, after mutual funds sold shares worth Rs. 1,600 crores of the bank in February 2025.

Price Movement

With a market cap of Rs. 53,240.5 crores, the shares of IndusInd Bank Limited reached an intraday high at Rs. 706.35, up by around 3.2 percent, as compared to its previous closing price of Rs. 684.7. The stock has delivered negative returns of nearly 54 percent over a one-year period, as well as over 34 percent returns in the last one month.

What’s the news

According to the Mutual Fund Insight report by Nuvama Alternative & Quantitative Research, mutual funds (MFs) offloaded around 1.6 crore shares of IndusInd Bank before its stock crash.

The total mutual fund holdings in the bank stood at around 20.7 crore shares in February 2025, down from 22.3 crore shares in January. India’s MFs sold IndusInd Bank shares worth Rs. 1,600 crores in February 2025, just a month before an accounting discrepancy surfaced.

This revelation led to the stock experiencing its biggest single-day decline on record. The crash followed multiple brokerage downgrades and significant target price cuts, triggered by concerns over discrepancies in its forex derivatives portfolio.

Among the major mutual funds that reduced their stakes in IndusInd Bank:

• Kotak Mutual Fund sold shares worth Rs. 510 crore
• Motilal Oswal Mutual Fund offloaded shares worth Rs. 126 crore
• Tata Mutual Fund also divested shares worth Rs. 126 crore
• PPFAS Mutual Fund sold shares worth Rs. 29 crore

While these funds were sellers, Quant Mutual Fund was a buyer of the stock, purchasing IndusInd Bank shares worth Rs. 305 crore in February, according to the report. As per sources, data from ACE MF indicates that as of February 28, 2025, mutual funds collectively held ~20.08 crore shares of IndusInd Bank, with a total market value of Rs. 19,884 crores.

Also read: Fertilizer stock jumps 3% after acquiring 53% stake worth ₹820 Cr in NACL Industries

Related News

The top executives of IndusInd Bank, CEO Sumant Kathpalia and Deputy CEO Arun Khurana, collectively sold shares worth Rs. 157 crore between 2023 and 2024. Sources indicate that Kathpalia sold nearly 9.5 lakh shares, valued at Rs. 134 crore, between May 24, 2023, and June 25, 2024, while purchasing 3.96 lakh shares worth Rs. 34 crore.

Likewise, Khurana offloaded 5.5 lakh shares for Rs. 82 crore between 2023 & 2024 and acquired 2.38 lakh shares worth Rs. 25 crore. The private lender has been in the news after announcing a 2.4 percent impact on its net worth due to changes in the valuation of derivatives transactions.

This revelation triggered multiple stock downgrades, coming shortly after the RBI granted CEO Kathpalia a 1-year extension, rejecting his request for a 3-year renewal.

Brokerage Target

The global brokerage firm CLSA has given an ‘outperform’ rating on IndusInd Bank but slashed its target price by around 31 percent from Rs. 1,300 to Rs. 900 per share, representing a potential upside of over 31 percent from the current price.

In its report, CLSA noted that the past few days have been turbulent for the bank, marked by the CEO’s one-year extension and the disclosure of a Rs. 1,500 crore net worth impact due to an accounting discrepancy.

Financial Performance

IndusInd Bank reported a significant growth in net interest income (NII), experiencing a year-on-year increase of nearly 10.6 percent, rising from Rs. 11,572 crores in Q3 FY24 to Rs. 12,800 crores in Q3 FY25.

Similarly, during the same period, the bank’s net profit decreased from Rs. 2,301.4 crores to Rs. 1,402.3 crores, representing a decline of around 39 percent YoY.

About the Bank

IndusInd Bank Limited is engaged in the business of providing a wide range of banking products and financial services to corporate and retail clients besides undertaking treasury operations.

Written by Shivani Singh

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Bank stock in which mutual funds sold shares worth over ₹1,600 Cr in February appeared first on Trade Brains.