The Economic Times

FII darling turns into exit trade: Is HDFC Banks 10% foreign holding drop a worrying sign?

HDFC Bank has seen a sharp decline in foreign investor ownership since its merger with HDFC, reflecting concerns over slower growth, funding pressures, margins and leadership changes. FII holding has fallen from 52.13% in September 2023 to 41.82% in June 2026. While valuations have become more attractive, investors await clearer signs of improving growth, profitability and post-merger execution.