HDFC Bank Sees Foreign Investor Stake Drop to 41.82%
· Business · Economic Times
Foreign institutional investor holding in HDFC Bank has declined by over 10 percentage points, falling from 52.13% in September 2023 to 41.82% by June 2026. This reduction follows the bank's merger with HDFC Ltd, which triggered investor concerns regarding slower growth, margin pressure, and leadership transitions. The bank is currently working to address an elevated loan-to-deposit ratio and improve deposit mobilisation to regain its growth premium. The decline in foreign ownership aligns with a period of muted stock performance, with shares delivering flat to negative returns over the past three years. Investors remain cautious as they await clearer signs of profitability and post-merger execution.
Why it matters
The shift in ownership signals a loss of confidence among major global investors in one of India's largest private lenders, potentially impacting the bank's valuation and capital-raising ability.
Read the original report — Economic Times
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