Top 7 Mutual Funds With Highest Exposure to HDFC Bank Amid Stock Volatility

Amid the recent resignation of Atanu Chakraborty on ethical grounds and HDFC Bank’s clarification that there are no undisclosed reasons, HDFC Bank continues to remain a core holding across mutual funds.

As of February 28, 2026, nearly 734 funds collectively held over 3,59,03,67,995 shares of HDFC Bank, highlighting strong institutional participation despite near-term volatility in HDFC Bank shares.

Below are the top 7 mutual funds with the highest exposure to HDFC Bank, each maintaining a significant allocation to the banking major.

1. Parag Parikh Flexi Cap Fund

The Parag Parikh Flexi Cap Fund, managed by Rajeev Thakkar, held 11,69,15,576 shares of HDFC Bank, with ₹1,34,253.2 crore AUM and a 7.73% allocation to HDFC Bank.

This is a flexi cap fund, meaning it invests across large-cap, mid-cap, and small-cap stocks without fixed allocation limits, allowing fund managers to dynamically adjust portfolios based on market conditions.

2. HDFC Flexi Cap Fund

The HDFC Flexi Cap Fund, managed by Amit Ganatra, held 8,20,00,000 shares of HDFC Bank, with ₹1,00,455.3 crore AUM and 7.25% exposure to HDFC Bank.

Like other flexi cap funds, it invests across market capitalisations with flexibility to shift allocation depending on opportunities and economic cycles.

3. ICICI Prudential Large Cap Fund

The ICICI Prudential Large Cap Fund, managed by Sankaran Naren, this fund held 7,98,79,508 shares of HDFC Bank, with ₹77,451.6 crore AUM and a 9.16% allocation to HDFC Bank.

Large cap funds primarily invest in top 100 companies by market capitalisation, focusing on established businesses with relatively stable earnings profiles.

4. Kotak Arbitrage Fund

The Kotak Arbitrage Fund, managed by Hiten Shah, held 5,56,05,000 shares of HDFC Bank, with ₹71,264.9 crore AUM and 6.93% exposure to HDFC Bank.

Arbitrage funds aim to capture price differences between cash and derivatives markets while maintaining largely hedged equity exposure, resulting in relatively lower directional risk.

5. ICICI Prudential Value Fund

Managed by Sankaran Naren, the ICICI Prudential Value Fund held 5,48,92,327 shares of HDFC Bank, with ₹60,571.3 crore AUM and an 8.05% allocation to HDFC Bank.

Value funds follow an investment approach that focuses on identifying stocks that appear undervalued relative to their fundamentals, aiming for long-term value realisation.

6. HDFC Balanced Advantage Fund

The HDFC Balanced Advantage Fund, managed by Gopal Agrawal, held 5,44,90,502 shares of HDFC Bank, with ₹1,07,589.7 crore AUM and 4.5% exposure to HDFC Bank.

Balanced advantage funds dynamically allocate between equity and debt based on market valuations, adjusting risk levels across different market phases.

7. Nippon India Large Cap Fund

The Nippon India Large Cap Fund, managed by Sailesh Raj Bhan, this fund held 5,10,80,734 shares of HDFC Bank, with ₹51,403.8 crore AUM and an 8.82% allocation to HDFC Bank.

As a large cap fund, it primarily invests in established companies with significant market capitalisation, aiming to provide relatively stable exposure within equity portfolios.

Institutional Positioning in HDFC Bank Amid Volatility

Despite the recent leadership change and the decline of over 4% in HDFC Bank share price to ₹806 (down ₹37 or 4.39%), HDFC Bank continues to remain a key holding across diversified fund categories, including flexi cap, large cap, arbitrage, value, and hybrid funds.

The consistent exposure to HDFC Bank across these top mutual funds reflects the bank’s strong institutional positioning, even as near-term sentiment remains influenced by governance-related developments and broader market conditions.