India’s largest private sector lender, HDFC Bank has seen a sharp decline in foreign investor ownership by over 10%. Foreign institutional investor (FII) holding in HDFC Bank has declined sharply over the past three years, falling from 52.13% in September 2023 to 41.82% in June 2026. This represents a decline of 10.31 percentage points, indicating a significant reduction in foreign investors’ ownership of the country’s largest private sector lender.
The bank has seen a sharp decline in foreign investor ownership since its merger with HDFC, as the bank has faced growing investor scrutiny over its growth, margins and leadership transition.
Foreign institutional investor holdings in HDFC Bank stood at 52.13% in September 2023, and by June 2026, it had fallen to 41.82%, a drop of 10.31 percentage points.
HDFC Bank foreign investors have witnessed steep decline in the latest quarter with FII holding falling from 44.05% in March 2026 to 41.82% in June 2026.
How HDFC Bank’s peers performed?
HDFC Bank is not alone in terms of witnessing decline in the share of foreign investors.
ICICI Bank’s FII holding fell from 44.39% in September 2023 to 33.79% in June 2026, Kotak Mahindra Bank decline from 39.32% to 25.21%, and Axis Bank’s FII ownership dropped from 53% to 39.91%.
Company
FII Holding (Sep 2023)
FII Holding (Jun 2026)
Change (Percentage Points)
HDFC Bank
52%
42%
-10 pp
ICICI Bank
44%
34%
-10 pp
Kotak Mahindra Bank
39%
25%
-14 pp
Axis Bank
53%
40%
-13 pp
