November 23, 2024
No Comments
Stock Market

Banking stocks with mutual fund holdings of upto 38% to keep on your radar

admin

Stock Market

Banking stocks with mutual fund holdings of upto 38% to keep on your radar

Banking stocks with significant mutual fund holdings reflect strong domestic institutional investor confidence in India’s financial sector. These stocks, particularly from private and select public sector banks with robust retail presence and digital transformation, attract mutual funds due to their consistent growth and improving operational metrics.

The significant mutual fund presence in banking stocks indicates fund managers’ positive outlook on India’s credit growth story and financial penetration. Banks with strong liability franchises, an expanding customer base, and improving asset quality matrices continue to draw mutual fund investments, highlighting their strategic importance in India’s economic landscape.

1. Equitas Small Finance Bank Limited

Equitas Small Finance Bank is an Indian banking institution providing retail, wholesale, and treasury services. The bank primarily focuses on microfinance, vehicle loans, home finance, and MSE lending, offering comprehensive financial solutions to individuals and small enterprises.

With a market capitalization of Rs. 7,229 crores, Equitas Small Finance Bank Limited’s share price closed at Rs. 63.5 per equity share. Equitas Small Finance Bank Limited has a majority stake held by domestic institutional investors at 43.66 percent, foreign institutional investors at 16.91 percent, and the public at 39.42 percent as of September 2024.

In the domestic institutional investors, the mutual fund has a holding of 38.22 percent, which includes the SBI MF at 5.95%, Franklin India MF at 6.29%, HDFC MF at 7.94%, ICICI prudential MF at 1.88%, Sundaram MF at 3.15%, Invesco India MF at 3.02%, Canara Robeco MF at 2.47%, Nippon Life India MF at 3.15%, DSP MF at 1.20%, and other mutual funds at 3.83% as of September 2024.

Equitas Small Finance Bank Limited’s interest income has increased by 48.86 percent from Rs. 1,617 crore in FY23 to Rs. 2,407 crore in FY24. The company’s net profit has increased from Rs. 574 crore in FY23 to Rs. 799 crore in FY24, which has grown by 39.2 percent.

2. Federal Bank Limited

Federal Bank is an Indian banking institution operating through the Treasury, Corporate, Wholesale, and Retail Banking segments. With over 1,390 branches and 1,350 ATMs nationwide, the bank provides comprehensive banking services, including deposits, lending, and foreign exchange to individuals and businesses.

With a market capitalization of Rs. 51,392 crores, Federal Bank Limited’s share price closed at Rs. 209 per equity share. Federal Bank Limited has a majority stake held by domestic institutional investors at 46.95 percent, foreign institutional investors at 27.72 percent, and the public at 25.32 percent as of September 2024.

In the domestic institutional investors, the mutual fund has a holding of 34.28 percent, which includes the SBI MF at 1.82%, Tata MF at 1.14%, Axis MF at 2.25%, Franklin India MF at 1.05%, HSBC MF at 1.97%, ICICI prudential MF at 1.72%, Sundaram MF at 1.13%, Invesco India ESG EF at 1.74%, Canara Robeco MF at 1.47%, Mirae Asset MF at 2.24%, Kotak MF at 2.34%, HDFC MF at 6.93%, Nippon Life India MF at 2.98%, DSP MF at 1.47%, and other mutual funds at 4.03% as of September 2024.

Federal Bank Limited’s interest income has increased by 45.31 percent from Rs. 9,975 crore in FY23 to Rs. 14,495 crore in FY24. The company’s net profit has increased from Rs. 3,210 crore in FY23 to Rs. 3,964 crore in FY24, which has grown by 23.49 percent.

3. City Union Bank Limited

City Union Bank is an Indian banking institution with 727 branches and 1,732 ATMs, predominantly in South India. The bank offers comprehensive banking services across treasury, corporate, and retail segments, serving various industries through modern technology platforms including digital banking solutions.

With a market capitalization of Rs. 12,702 crores, City Union Bank Limited’s share price closed at Rs. 172 per equity share. City Union Bank Limited has a majority stake held by domestic institutional investors at 32.55 percent, foreign institutional investors at 26.44 percent, and the public at 41 percent as of September 2024.

In the domestic institutional investors, the mutual fund has a holding of 34.28 percent, which includes the SBI MF at 8.30%, HDFC MF at 3.91%, Franklin India MF at 3.1%, Kotak Mahindra MF at 2.52%, Axis MF at 2.46%, ICICI prudential MF at 2.09%, Nippon India MF at 1.33%, UTI MF at 1.13%, Canara Robeco MF at 1.02%, and other mutual funds at 3.18% as of September 2024.

City Union Bank Limited’s interest income has increased by 23.32 percent from Rs. 2,552 crore in FY23 to Rs. 3,147 crore in FY24. The company’s net profit has increased from Rs. 937 crore in FY23 to Rs. 1,016 crore in FY24, which has grown by 8.43 percent.