IndusInd Bank’s stock dropped 20% on March 11, causing a loss of over Rs 6,000 crore for mutual funds that held its shares. The fall happened after the bank revealed a 2.4% impact on its net worth due to changes in the valuation of derivative transactions.

As of February, 35 mutual funds held over 20.88 crore shares of IndusInd Bank, worth Rs 20,670 crore. After the stock’s sharp decline, the value dropped to Rs 14,600 crore. ICICI Prudential MF suffered the most, with a holding of Rs 3,779 crore, followed by HDFC MF (Rs 3,564 crore) and SBI MF (Rs 3,048 crore). Other major funds affected include UTI, Nippon India, Bandhan, and Franklin Templeton.

The stock has fallen 54% from its peak in April 2024. Analysts say the bigger issue is trust, which could take time to recover. The bank has hired an independent agency to check its findings. Some experts believe better financial performance and deposit growth could help restore confidence over time.

Source: Moneycontrol