Synopsis: HDFC Bank Limited saw FII stake decline in Q4 FY26, while domestic and global investors increased holdings, reflecting mixed sentiment but continued confidence from key institutional investors.
This Private Sector Bank, engaged in providing banking and financial services, including retail banking, corporate lending, payments, and digital financial solutions across diverse customer segments in India, is in focus after the DIIs increased their stake by 3.14%, while FIIs reduced holdings by 3.62%.
Despite the decline in FII participation, strong buying from major investors such as ICICI Group, SBI Group, Vanguard, and the Government of Singapore highlights continued confidence in the bank’s long-term growth prospects.
Stock Price Movement
With a market capitalization of Rs. 11,89,060.74 crore, the shares of HDFC Bank Limited closed at Rs. 772.45 per equity share, rising nearly 0.16 percent from its previous day’s close price of Rs. 771.20.
Over the past year, the stock has provided negative returns of more than 12.11 percent. The stock is currently trading at a discount of 24.30 percent from its 52-week high of Rs. 1,020.35 per equity share.
What is the News?
HDFC Bank Limited is engaged in providing a wide range of banking and financial services, including retail banking, corporate lending, payments, and digital banking solutions to millions of customers across India.
As per the latest shareholding data for March 2026, HDFC Bank Limited had a majority stake held by foreign institutional investors (FIIs) held a significant 44.05 percent stake, followed by domestic institutional investors (DIIs) at 40.14 percent, the public at 15.64 percent, and the government at 0.18 percent
However, FIIs reduced their stake during the quarter by about 3.62 percent, bringing it down from 47.67 percent in the previous quarter. The number of FII investors also declined from 2,757 in December 2025 to 2,528 in March 2026, marking the third consecutive quarter of reduction.
On the other hand, domestic institutional investors increased their holdings. Mutual funds raised their stake to 29.54 percent from 26.66 percent, adding around 2.88 percent during the quarter. Other domestic investors also showed interest, with provident funds investing Rs. 2,239 crore and insurance companies adding about Rs. 256 crore. However, Life Insurance Corporation of India reduced its stake by selling shares worth Rs. 969 crore.
Key Institutional Buyers in Q4 FY26
In HDFC Bank Limited, several major domestic and foreign investors have increased their stakes, showing strong confidence. Among domestic institutional investors, the HDFC Group raised its stake by 0.4 percent to 5.8 percent, with an investment value of around Rs. 58,793.4 crore.
The ICICI Group increased its stake by 0.8 percent to 4.3 percent, valued at Rs. 43,720.1 crore. The SBI Group also added 0.2 percent, taking its total stake to 7.5 percent, worth Rs. 76,100.8 crore. Meanwhile, the Kotak Mahindra Group made a fresh entry with a 1.3 percent stake valued at Rs. 13,348.3 crore.
Among foreign institutional investors, key global investors also increased their exposure. Vanguard Fund raised its stake by 1.2 percent to 2.4 percent, valued at Rs. 24,690.2 crore. The Government of Singapore increased its holding slightly by 0.1 percent to 2.4 percent, while Government Pension Fund Global also added 0.1 percent, taking its stake to 1.3 percent, reflecting continued global confidence in the bank.
Branch Network and Customer Base
HDFC Bank Limited has a wide branch network across metro (29 percent), urban (21 percent), semi-urban (33 percent), and rural (17 percent) areas, with about 9,616 branches. This balanced presence helps the bank serve customers across regions and supports steady growth.
The bank’s customer base increased from 93 million in December 2023 to 100 million in December 2025, adding around 7 million customers (about 7.5 percent). This growth shows strong customer trust and rising demand across different segments.
Key Financial Parameters
HDFC Bank Limited delivered steady performance in Q3 FY26, supported by healthy growth in deposits and loans. Average deposits reached Rs. 27,524 billion, growing 12.2 percent year-on-year, while advances rose to Rs. 28,641 billion, up 9 percent YoY. This shows stable business growth and strong demand.
The bank maintained a net interest margin of 3.35 percent and a cost-to-income ratio of 39.2 percent, reflecting efficient operations. Asset quality remained strong with low NPAs, and return on assets stood at 1.9 percent, indicating consistent profitability.
Company Overview
HDFC Bank Limited was established in 1994 and is headquartered in Mumbai and is one of India’s leading private sector banks. It is recognized for its strong retail banking presence, advanced digital capabilities, and consistent financial performance, making it one of the most valuable financial institutions in the country.
Recent Quarter Results
Coming into financial highlights, HDFC Bank Limited’s Net Interest Income has increased from Rs. 38,125 crore in Q3 FY25 to Rs. 41,245 crore in Q3 FY26, which has grown by 8.18 percent. The net profit has also grown by 12.82 percent from Rs. 18,340 crore in Q3 FY25 to Rs. 20,691 crore in Q3 FY26. HDFC Bank Limited’s Net Interest Income and net profit have grown at a CAGR of 25.38 percent and 24.4 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE stand at 7.51 percent and 14.4 percent, respectively. HDFC Bank Limited has an earnings per share (EPS) of Rs. 48.6, and its debt-to-equity ratio is 6.20x.
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