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FIIs raise stakes in a small set of bank stocks in June quarter
In the April to June 2026 period, foreign institutional investors increased ownership in only a handful of listed banks, signaling limited but selective foreign interest.
Foreign institutional investors increased their holdings in only a small number of listed banking stocks in the June 2026 quarter, LiveMint Markets said, based on a scan of banks where foreign ownership rose during the April-June window.
The outlet noted that rising FII ownership can be a useful starting signal of confidence, but it is not enough on its own to justify buying a stock, urging investors to weigh fundamentals like asset quality, earnings trajectory and valuations.
One example highlighted was Jammu and Kashmir Bank, where FIIs increased their stake from 8.4% in the March 2026 quarter to 9.4% in April-June. LiveMint Markets pointed to the bank’s turnaround efforts, including operational restructuring, creation of dedicated deposit and cross-selling verticals, and co-lending arrangements, as well as improved profitability after losses in FY20.
The article also cited South Indian Bank as another lender seeing higher foreign holdings, describing its shift from a regional bank into a technology-driven, pan-India model. The piece emphasized that investors should still evaluate each bank’s fundamentals beyond the presence of foreign buying.