FIIs cut stake in HDFC Bank by 360 bps in March quarter amid 26% stock slump

Foreign institutional investors (FIIs) offloaded 3.62% stake in during the March 2026 quarter, amid volatility in the Indian stock market.

According to the shareholding pattern available on NSE, FIIs sold 47.95 crore shares of HDFC Bank during the March quarter, with their holding declining to 44.05% from 47.67% in the previous quarter. The number of FII investors in the bank fell to 2,528 at the end of March from 2,757 in December 2025.

Overall, FIIs remained net sellers in the recently concluded quarter, with March seeing the largest sell-off in the Indian stock market, amid the ongoing US-Iran war and rising crude oil prices. In the cash segment, FIIs offloaded equities worth 1.22 lakh crore last month, taking the total outflows to 1.70 lakh crore in Q4.

India’s biggest DII, Life Insurance Corporation of India (LIC), also trimmed its stake marginally during the March quarter to 4.66% from 4.67% in the previous quarter.

On the other hand, mutual funds increased their stake in India’s largest private lender in the March quarter to 29.54% by acquiring roughly 2.88% stake or 38.67 crore shares.

HDFC Bank share performance in Q4

HDFC Bank share price fell by 25.97% during the fourth quarter of the last financial year, with 17% decline recorded in March alone. The banking stock faced intense selling pressure in March after the sudden resignation of chairman Atanu Chakraborty.



Chakraborty cited “certain happenings and practices” over the past two years that conflicted with his values as the reason behind his resignation, which sparked concerns around corporate governance. Afterwards, SEBI stepped in to examine the contents of his resignation letter.

HDFC Bank stock has also seen a sharp de-rating in the last few months, partly led by macro concerns.

HDFC Bank Q4 update

India’s largest private sector lender on Saturday reported its for the fourth quarter. As per the exchange filing, average advances under management for the March 2026 quarter came in at 29.64 lakh crore, marking a roughly 10% increase from 26.96 lakh crore in the corresponding period last year.

As of March 31, 2026, advances under management at the end of the period were about 30.58 lakh crore, up 10.2% from 27.73 lakh crore a year ago. Meanwhile, period-end gross advances stood at around 29.60 lakh crore, registering a 12% rise compared with 26.44 lakh crore as of March 31, 2025.

On the liabilities side, average deposits for the March 2026 quarter climbed to 28.51 lakh crore, reflecting a 12.8% growth from 25.28 lakh crore in the year-ago period.

Within this, average CASA deposits were 9.18 lakh crore, up 10.8% from 8.29 lakh crore, while average time deposits increased by 13.7% to 19.33 lakh crore from 16.99 lakh crore.

HDFC Bank share price trend

Private lender shares rose as much as 2% to 765.60 apiece in Monday’s trading session. The stock opened at 759 per share today, as compared to the previous close of 750.

has largely remained under pressure in the near-term. The banking stock has shed 23% on a year-to-date (YTD) basis.

Zooming out further, the stock has delivered negative returns of 22% in six months and 16% in a year. However, it has given multibagger returns of 187% in the last ten years.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.

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