HDFC Bank sell-off: Which mutual fund schemes are facing the maximum heat?

HDFC Bank shares came under pressure after Atanu Chakraborty’s resignation rattled the investor sentiment. The HDFC Bank share price hit a new 52-week low at ₹770 apiece on the NSE, down nearly 22% from the record high levels.

The shares hold significance on multiple grounds, as they hold nearly 12% weightage in the NIFTY50 index. Along with the NIFTY50, the stock is also part of the large holdings of AMCs and domestic and foreign institutions.

MF schemes with HDFC Bank exposure

HDFC Bank, being one of the top private sector banks with a consistent growth record, has been the top pick of many fund managers across categories.

In addition, the stock is highly liquid with nearly 99% free float market capitalisation, which provides fund managers with easy access to liquidity in times of exit.

According to Trendlyne data, 735 mutual fund schemes hold HDFC Bank in their portfolios as of February 2026, out of which 305 funds bought shares of HDFC Bank, while 138 schemes sold.

Source: Trendlyne

Top five ETFs and passive funds that hold highest exposure to HDFC Bank

Source: Trendlyne

Apart from the asset management companies, large foreign institutions, banks, and government institutions like LIC of India and NPS Trust also hold significant shareholding in the bank.

##High underperformance

HDFC Bank has shown strong underperformance in the past five years after recovering from Covid-19 lows. The bank also went through the merger of HDFC Ltd and HDFC Bank, the fruits of which are yet to be borne by the bank.

HDFC Bank has delivered 2% CAGR returns in the past five years despite a 10% CAGR growth in profitability. The bank continues to struggle with asset-liability mismatch issues as the post-merger deposit profile remains under pressure.