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HDFC Bank stock lagged under Jagdishan as mutual funds piled in
Mutual funds more than doubled their HDFC Bank stake to 30.6% by June 2026, even as the lender’s adjusted share price rose 17% during Jagdishan’s tenure.
HDFC Bank’s share price lagged most peers during Sashidhar Jagdishan’s time as managing director and chief executive, while domestic mutual funds steadily increased their holdings, according to LiveMint Markets. Jagdishan is set to step down on 26 October, leaving behind a changed shareholder register shaped by both market performance and ownership mechanics.
Between 26 October 2020, the last trading day before Jagdishan took charge, and 31 August 2026, HDFC Bank’s adjusted share price grew by just 17%. Over the same period, the median return for 20 private-sector banks was 148%, and for 12 public-sector banks it was 374%, with the Nifty Private Bank index up 110% and the Nifty PSU Bank index up 560%.
HDFC Bank delivered the second-lowest return among 32 banks studied, beating only Bandhan Bank, which fell 45%. LiveMint Markets also notes the divergence between price performance and institutional accumulation, with Rajesh Singla, chief executive and fund manager at Alpha AMC, saying the relationship between share-price performance and institutional ownership is not always linear.
On the ownership side, mutual funds held 30.62% of HDFC Bank at the end of June 2026, up 17.26 percentage points from 13.36% in December 2020, the first quarterly disclosure after Jagdishan took charge. The outlet reports that the lender’s merger with HDFC Ltd helped reshape the shareholder base, including attracting index-linked and passive ownership, while foreign portfolio investors’ stake rose from 39.35% to 41.82% and retail investors’ stake increased from 9.19% to 10.32%.