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In February, mutual funds sold IndusInd Bank shares worth ₹1,600 crore. This move came just before the bank reported an issue with its forex derivatives portfolio. The problem, disclosed in March, may reduce the bank’s net worth by ₹1,577 crore or 2.35%.
The announcement caused IndusInd Bank’s shares to drop 27%, erasing ₹20,000 crore in market value. It was the stock’s largest single-day fall. Afterward, the stock entered the F&O ban list, limiting new trades.
Some funds, like Kotak and Motilal Oswal, reduced their stakes, while Quant Mutual Fund added more shares. Despite the turmoil, the Reserve Bank of India assured investors that the bank remains stable and well-capitalized.
This situation shows why financial institutions need clear reporting and risk management. Investors should stay cautious, diversify their portfolios, and make informed decisions as the bank works to resolve this issue.
