India’s stock market volatility continues, with IndusInd Bank facing its biggest setback since March 2020. On March 11, 2025, the bank’s shares hit a lower circuit, tumbling by 26% to a 52-week low of ₹657.10. The steep fall was triggered by concerns over weak internal controls, following the bank’s disclosure of discrepancies in derivatives accounting.
This development has intensified worries among investors, particularly those with exposure to IndusInd Bank through mutual fund investments.
Several mutual funds hold significant stakes in IndusInd Bank, and the sharp decline in its stock price could impact their portfolios. Here are the top 5 mutual funds with notable exposure to the bank:
Mutual Fund Schemes | AUM ( ₹ in Cr) | AUM % | Shares Held In Feb 2025 |
Quant ESG Equity Fund | 16.44 | 6.31 | 1,66,000 |
Quant Focused fund | 49.7 | 5.15 | 5,02,000 |
Sundaram Focused Fund | 48.88 | 4.85 | 4,93,733 |
Sundaram Financial Services Opportunities Fund | 59.53 | 4.49 | 6,01,270 |
LIC MF Focused Fund Growth | 5.12 | 4.22 | 51,716 |
The sudden plunge in IndusInd Bank’s stock has raised questions about the bank’s risk management framework and corporate governance practices. The issue of discrepancies in derivatives accounting suggests potential lapses in oversight, which could affect investor confidence in the broader banking sector.
A sharp drop in IndusInd Bank’s share price has sent ripples across the market, particularly affecting mutual funds with significant holdings in the stock. As the market digests this development, investors and fund managers will likely keep a close watch on further disclosures and corrective actions from the bank.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 11, 2025, 3:15 PM IST
Team Angel One
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