Mutual funds have cut their exposure to IndusInd Bank to 27.55% in the January-March quarter, from 30.31% in the October-December quarter. Promoter shareholding, too, saw a marginal decline to 15.83% from 16.29%, according to the latest shareholding data on the BSE.

However, individual investors and foreign portfolio investors (FPIs) have increased their stake by 1.13% and 4.79%, respectively, during the latest quarter.

Shares of IndusInd Bank rose over 7% on Wednesday to close at Rs 788 on the BSE after the bank said the impact of the discrepancy in accounting of its derivatives trade was smaller than the earlier assessment.

“There were apprehensions with respect to potential negative surprises flowing post independent external review… as it was similar to the guided impact, concerns were mitigated,” Citigroup analysts, including Kunal Shah, wrote in a note.

The country’s fifth-largest private bank said on Tuesday that the report by an external agency showed an impact of Rs 1,979 crore to its net worth due to discrepancies in its derivatives portfolio. The amount represents 2.27% of the net worth as of December 2024, compared with 2.35% it had previously estimated.

The bank had appointed an external agency to independently review its internal findings and to get the final report to determine the accounting treatment of any resulting impact on its financial statements.

Following the bank’s March 10 announcement of finding certain discrepancies in accounts balances of its derivative portfolio, the scrip plummeted to its 52-week low of Rs 606, leading to a change in shareholdings. Mutual funds have trimmed their exposure to the crisis-hit lender.

Asset management companies that have reduced their stake in the bank include Kotak Mutual Fund, Quant Mutual Fund, Aditya Birla Sun Life, UTI and SBI. Life Insurance Corporation of India now has a 5.08% stake, marginally lower than 5.23% it held in December.

FPI and individual investors, however, have increased their exposure to the bank. The stake of FPIs has increased to 29.53% in the March quarter, from 24.74% in the previous three-month period. The stake of individual investors has increased to 11.23% from 10.10%.