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Foreign Investors Cut Stakes in Several Indian Private Banks
Foreign investors own shares in many Indian banks.
During the June quarter, they sold some shares in several large private banks.
Their ownership fell the most among these banks in HDFC Bank.
Some other banks, including IndusInd Bank and Federal Bank, saw foreign ownership rise instead.
Smaller lenders such as City Union Bank and Bandhan Bank experienced sharper drops.
An analyst said foreign investors have been selling Indian stocks for several quarters.
Banks were affected more because foreigners have traditionally owned large portions of them.
The data compares ownership in June with ownership in March.
Foreign institutional investors reduced holdings in HDFC Bank, Kotak Mahindra Bank, Axis Bank and ICICI Bank during the June quarter.
HDFC Bank recorded the largest decline among the major private banks, falling to 36.26% from 38.16%.
FII ownership increased in IndusInd Bank, Federal Bank and Karnataka Bank during the same period.
City Union Bank, Bandhan Bank and AU Small Finance Bank saw sharper declines in foreign ownership.
Analyst Kranthi Bathini attributed the broader reduction to sustained foreign portfolio investor selling in Indian equities over four to five quarters.
- Who
- Foreign institutional investors and foreign portfolio investors, with changes reported across Indian private-sector banks.
- What
- Foreign ownership declined in several private banks, while rising in IndusInd Bank, Federal Bank and Karnataka Bank.
- Where
- India.
- When
- The figures compare the June 2026 quarter with March 2026; the report was published on September 7, 2026.
- Why
- An analyst said foreign investors have been selling Indian equities for four to five quarters, affecting banking and financial-services companies with relatively high foreign ownership.
Key facts
- HDFC Bank FII holding
- 36.26% in June 2026, down from 38.16% in March
- Kotak Mahindra Bank FII holding
- 25.21%, down from 26.40%
- Axis Bank FII holding
- 39.91%, down from 40.71%
- ICICI Bank FII holding
- 33.79%, down from 34.49%
- IndusInd Bank FII holding
- 27.81%, up from 27.25%
- Largest reported decline
- City Union Bank fell to 18.65% from 23.37%
- Analyst cited
- Kranthi Bathini, Director-Equity Strategy at WealthMills Securities
Quotes
Kranthi Bathini
Director-Equity Strategy at WealthMills Securities
“Foreign portfolio investors have been continuously selling from India over the past four-five quarters as part of their broader strategy. Banking and financial services is one sector where FIIs have larger stakes, so that has resulted in their shareholding in private sector banks coming down.”
thehindubusinessline.com
Sources
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