Indusind Bank has been in the spotlight after its stock plummeted 27%, reaching its new 52-week low of 720.50. The decline came after banks revealed inconsistencies in their forex-derived portfolios, causing massive sales. This sharp fall has affected several mutual funds that have developed considerable interest in the bank. In this article, we analyze mutual funds with the highest exposure to Indusind Bank and analyze how much they lost.
What’s wrong with Indusind Bank?
The inventory conflict was primarily due to mismatched accounting for the Forex Derivatives portfolio, which has resulted in a major blow to net assets. The bank admitted that the negative impact was about 2.4% of its net worth. The revelation has resulted in downgrades of several brokerages, further strengthening sales.
AMC mutual fund with the highest exposure to Indusind Bank
As of February 28, 2025, the mutual fund collectively holds approximately 20.08 crore of shares in Indusind Bank, with a total market value of 19,884 crore. However, after inventory crashed, the value fell 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 s.)
- HDFC Mutual Fund – £2,773 crore
- UTI Mutual Fund – £2,447 crore
- Nippon India Mutual Fund – £2,121 crore (2.14 crore s.)
Other notable AMCs:
- Kotak Mutual Fund – £522 crore
- Tata Mutual Fund – £517 crore
- Quant Muturfund – £304.65 crore (30.77 lark s.)
- Edelweiss Mutual Fund – £245 crore (24.76 lark s.)
- DSP Mutual Fund – £166.29 crore (16.79 lark s.)
- JM Mutual Fund – £86.63 crore
- HSBC Mutual Fund – £78.44 crore
- PPFAS Mutual Fund – £43.56 crore (440,000 shares)
- Zerodha Mutual Fund – £2.76 crore
- White Oak Capital Mutual Fund – £1.96 crore
- Torus Mutual Fund – £0.29 crore
Indusind Bank Crash-influenced mutual fund scheme
Among the schemes are the worst hit mutual funds:
- SBI NIFTY 50 ETF – £1,165 crore exposure
- HDFC Mid-Cap Opportunities Fund – £913 Crawl Exposure
- HDFC Large Cap Fund – £611 crawl exposure
- Nippon India Large Cap Fund – £336 crawl exposure. This fund is Best Lauge Cup Mutual Funds to Invest in 2025 Previously.
- HDFC Flexi Cap Fund – £247 crawl exposure
- Bandhan Flexi Cap Fund – 136 crore exposure
- Quant Mid Cap Fund – £94.06 Crawl Exposure
- Nippon India Small Cap Fund – £34.89 Krawl Exposure
- Parag Parikh Flexi Cap Fund – £20 crule exposure. This is one of them 10 mutual funds that fell last in the last six months during stock market corrections.
Mutual funds lose more than 7,300 crores due to inventory crashes
Prior to the crash, the mutual fund had collectively held Indusind Bank stock worth 22,339 crore as of February 28, 2025. However, after the crash, the total exposure reduced to around 15,032 crores, indicating a collective loss of over 7,300 crores.
Should mutual fund investors be worried?
For passive investors in index funds and ETFs, exposure to Indusind Bank was inevitable as it is part of the key indicators. However, for aggressively managed funds, this crash has sparked concerns about fund managers’ equity selection strategies. Investors need to monitor their portfolio’s exposure to Indusind Bank, but they can’t do anything from their side.
Conclusion
Indusind Bank’s sudden stock crash wiped out a huge amount of value from its mutual fund portfolio. Long-term investors may wait for a potential recovery, but short-term investors will have an impact on their holdings. investment Diversified mutual fund portfolio It helps to reduce the impact.
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