HDFC Bank: ‘Buy the dip’ move by mutual funds! Rs 17,250 cr buying depsite Atanu exit; stock rebounds
HDFC Bank: Mutual funds raised stakes in the private lender to 24.74 per cent in March from 23.35 per cent in February. As things stand today, HDFC Bank shares are up 10 per cent in April so far.
- Apr 15, 2026,
- Updated Apr 15, 2026 12:03 PM IST
While the market participants were dumping HDFC Bank Ltd shares in March, following part-time Chairman Atanu Chakraborty's resignation, mutual funds were buying their biggest stock bet with both hands, data compiled from PRIME Database suggested.
Chakraborty's resignation on March 18 citing 'certain happenings and practices within the bank which are not in congruence with his personal values and ethics' casted a shadow over the board and the management team, sending HDFC Bank shares tumbling 18 per cent for the month.
During this period, mutual funds raised their stakes in the private lender to 24.74 per cent from 23.35 per cent in February. As things stand today, HDFC Bank shares are up 10 per cent in April so far.
MFs bought a net Rs 17,250.44 crore worth HDFC Bank shares, even as their holding value in the private lender fell Rs 40,296.94 crore to Rs 2,78,575 crore in March from Rs 3,18,872 crore in February. Despite the fall, HDFC Bank is mutual funds' biggest stock bet, followed by ICICI Bank Ltd (Rs 2.4 lakh crore) and Reliance Industries (Rs 1.74 lakh crore).
PRIME Database calculated net buy by multiplying the difference in February and March shareholding by the volume weighted average price during the month of March.
HDFC Bank recently received 'Buy' recommendation from MOFSL and 'Outperform' rating from Bernstein and Macquarie following its March quarter business update. Analysts said a beat on deposit growth and in line steady advances led to sequential decline in CD ratio.
Later, PL Capital on April 10 increased weight of HDFC Bank in its model portfolio. On the same day, BNP Paribas suggested a 'Buy' rating and a target of Rs 1,500 on the stock.
Ambit Capital in a recent note said HDFC Bank has underperformed many of its peers over the past year, with major stock pressure in H2FY26. Stretched loan-to-deposit ratio (LDR) are among the most highlighted reasons for this underperformance, which was contrary to expectations of a softening ratio, it said.
"They raised uncertainty regarding the bank’s ability to augment deposits and continue to participate in credit growth. However, we believe that the LDR crisis is overstated for the bank as discussed below," the brokerage said.
Ambit Capital said HDFC Bank has consistently gained deposit market share in the past. Even post-merger, the bank continued to demonstrate proficiency in deposit augmentation, registering mid-teens deposit growth in the past quarters.
The brokerage revised its target for HDFC Bank lower to Rs 1,050 from Rs 1,150, which still suggests 40 per cent potential upside.
While the market participants were dumping HDFC Bank Ltd shares in March, following part-time Chairman Atanu Chakraborty's resignation, mutual funds were buying their biggest stock bet with both hands, data compiled from PRIME Database suggested.
Chakraborty's resignation on March 18 citing 'certain happenings and practices within the bank which are not in congruence with his personal values and ethics' casted a shadow over the board and the management team, sending HDFC Bank shares tumbling 18 per cent for the month.
During this period, mutual funds raised their stakes in the private lender to 24.74 per cent from 23.35 per cent in February. As things stand today, HDFC Bank shares are up 10 per cent in April so far.
MFs bought a net Rs 17,250.44 crore worth HDFC Bank shares, even as their holding value in the private lender fell Rs 40,296.94 crore to Rs 2,78,575 crore in March from Rs 3,18,872 crore in February. Despite the fall, HDFC Bank is mutual funds' biggest stock bet, followed by ICICI Bank Ltd (Rs 2.4 lakh crore) and Reliance Industries (Rs 1.74 lakh crore).
PRIME Database calculated net buy by multiplying the difference in February and March shareholding by the volume weighted average price during the month of March.
HDFC Bank recently received 'Buy' recommendation from MOFSL and 'Outperform' rating from Bernstein and Macquarie following its March quarter business update. Analysts said a beat on deposit growth and in line steady advances led to sequential decline in CD ratio.
Later, PL Capital on April 10 increased weight of HDFC Bank in its model portfolio. On the same day, BNP Paribas suggested a 'Buy' rating and a target of Rs 1,500 on the stock.
Ambit Capital in a recent note said HDFC Bank has underperformed many of its peers over the past year, with major stock pressure in H2FY26. Stretched loan-to-deposit ratio (LDR) are among the most highlighted reasons for this underperformance, which was contrary to expectations of a softening ratio, it said.
"They raised uncertainty regarding the bank’s ability to augment deposits and continue to participate in credit growth. However, we believe that the LDR crisis is overstated for the bank as discussed below," the brokerage said.
Ambit Capital said HDFC Bank has consistently gained deposit market share in the past. Even post-merger, the bank continued to demonstrate proficiency in deposit augmentation, registering mid-teens deposit growth in the past quarters.
The brokerage revised its target for HDFC Bank lower to Rs 1,050 from Rs 1,150, which still suggests 40 per cent potential upside.