HDFC Mutual Fund Ups Stake in IndusInd Bank Amid Accounting Concerns

HDFC Mutual Fund has increased its stake in IndusInd Bank to over 5%, purchasing an additional 15.92 lakh shares. This comes following a revelation of a Rs 2,100 crore accounting discrepancy within the bank, impacting its share price. The total holding now stands at 5.02%.

HDFC Mutual Fund announced on Thursday an increase in its holding in IndusInd Bank, surpassing the 5% mark. The purchase of 15.92 lakh shares was confirmed just a day after IndusInd Bank revealed a significant Rs 2,100 crore accounting discrepancy.

The accounting issue, impacting about 2.35% of the bank's net worth, led to a sharp decline in the bank's share price. By the end of trading on March 11, 2025, HDFC Mutual Fund's stake had climbed from 4.82% to 5.02% of IndusInd's paid-up equity capital.

IndusInd Bank acknowledged an oversight in its treasury business, which eluded detection during various audits, including those by the RBI. The bank has appointed an external agency for a thorough investigation, with results expected by April.