HDFC Bank: FII ownership declines to 47.8% in the March’ 2024 quarter from 52.3% at the end of December’2023 quarter.

HDFC Bank share price gained more than 3% on Thursday and the stock was largest gainer amongst Nifty-50 stocks. While the business updates provided by the HDFC Bank for the March quarter lifted the investor sentiments,  The shareholding data for HDFC Bank at the end of March ‘2024  also showed that there was  decline in ownership by  Foreign Institutional investors (FII) during the the March 2024 quarter. The FII ownership in HDFC Bank as of March’2024 quarter at 47.83%, declined from 52.39% in the December'2023 quarter. This is leading to expectations that there may be some balancing and fresh emerge from new Foreign Investors  to compensate for the gap that has been created by reduced FII stakes in HDFC Bank and the requirement to meet the weightage in the MSCI .

A market expert on condition of anonymity , said that the expectations have been raised and the share price is also gaining in anticipation of fresh buying by Foreign institutions. The share price may move up from here but it remains to be seen whether some fresh selling may emerge at higher levels. 

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As FII reduced stakes, however the Mutual Funds have been raising stakes in the HDFC Bank suggested the data on the exchanges. The mutual Fund holding more than 1% stake in HDFC Bank have seen ownership increase to 22.35% by end of March 2024 quarter compared to 19.48% at the end of December'2023 quarter suggested data. 

Overall Mutual Fund ownership stood at 23.17% by end of March suggested Data on the BSE. 

 Life Insurance Corporation of India also has seen some increase in  ownership to 5.26% (0.04% in Q4). 

Also while the December quarter shareholding showed the Government of Singapore as the entity holding 2.32% stake in HDFC Bank, the March shareholding showed the Government of Singapore shareholding increasing slightly to 2.34%. 

In addition two new names also have been seen with Vanguard Total International Stock Index Fund holding 1.17% stake, the Government Pension Fund Global too owning 1.44% stake were among prominent shareholder.

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Meanwhile the business updates shared by HDFC Bank on the exchanges also lifted the investor sentiments. The deposits in Q4FY24 totaled about ₹23.80 lakh crore, were up 7.5% sequentially and 26.4% year over year.  Strong rise in retail deposits was also observed, at 27.8% YoY and 6.9% sequentially. Wholesale deposits increased by roughly 10.9% consecutively and 19.4% year over year.