In HDFC Bank, for instance, they have reduced their holding after a gap of more than two years

Foreign institutional investors (FIIs) reduced their exposure to Indian banking stocks during the second quarter on concerns of margin stress due to slowdown in the economy, rising non-performing assets and higher cost of funds.

FIIs have cut their holdings in public as well as private sector banks during the quarter ended September. Of the 25 banks that have thus far released the quarter’s shareholding pattern, data suggests FIIs’ stake in 20 banks fell by up to six percentage points. In Bank of Baroda, Jammu and Kashmir Bank, Axis Bank and UCO Bank, FIIs have raised their holdings marginally over the previous quarter.

FIIs’ stake in State Bank of India (SBI), HDFC Bank, ICICI Bank, IndusInd Bank, Indian Bank, Andhra Bank and Karnataka Bank has declined by one to six per cent in the July-September quarter.

In HDFC Bank, FIIs have reduced their holding after a gap of more than two years. FIIs’ stake in the country’s largest private sector lender has declined by nearly one percentage points at 33.61 per cent in the September quarter. FIIs held 34.49 per cent stake at the end of June quarter. FIIs’ stake in ICICI Bank has declined by about two percentage points to 37.56 per cent from 39.24 per cent, while in SBI, their holdings reduced to 8.88 per cent from 9.79 per cent.

For more visit: Business Standard

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