Which Mutual Funds Hold Maximum Shares of IDFC First Bank?

A ₹590-crore fraud at a single Chandigarh branch of IDFC First Bank led to a sharp market reaction on Monday, wiping out ₹14,438 crore in market capitalisation. 

Mutual Fund Exposure Under Spotlight

According to data from ACE MF, mutual funds collectively held nearly 99 crore shares of IDFC First Bank, valued at approximately ₹8,281 crore as of January 31, 2026. Around 34 asset management companies (AMCs) and two SIFs had exposure to the stock.

Tata Mutual Fund held the highest exposure with 14.12 crore shares worth ₹1,180 crore. HSBC Mutual Fund and Motilal Oswal Mutual Fund held 8.53 crore shares each, followed by Edelweiss Mutual Fund with 6.05 crore shares. 

HDFC Mutual Fund and Nippon India Mutual Fund owned 5.95 crore and 5.57 crore shares respectively, while ICICI Prudential Mutual Fund and SBI Mutual Fund held 3.72 crore shares each. 

Kotak Mutual Fund held 3.69 crore shares worth ₹308 crore, and Aditya Birla Sun Life Mutual Fund owned 3.52 crore shares. Smaller exposures included PPFAS Mutual Fund, Helios Mutual Fund, Altiva SIF (by Edelweiss), Invesco Mutual Fund, QSIF (by Quant Mutual Fund), JioBlackRock Mutual Fund, and Angel One Mutual Fund.

What Exactly Happened?

The issue surfaced on February 18, 2026, after Haryana government entities reported discrepancies between actual balances and reported figures. An internal review traced the problem to certain Haryana government-linked accounts at the Chandigarh branch. 

Four suspected branch officials have been suspended, and the bank has filed a police complaint. It has also informed statutory auditors and appointed KPMG to conduct an independent forensic audit. The Board’s Special Committee for Monitoring Fraud Cases and the Audit Committee have reviewed the matter.

Reputational Impact Deepens

The Haryana government has de-empanelled IDFC First Bank and AU Small Finance Bank, directing state departments to close accounts with both institutions. This development raises concerns about institutional trust and potential business impact beyond the immediate financial loss.

Also Read: IDFC First and AU SFB Barred from Haryana Govt Business in Wake of ₹590 Crore Fraud!

Conclusion

The ₹590-crore fraud has not only impacted IDFC First Bank’s valuation but also dented investor and institutional confidence. While investigations are underway and governance measures initiated, the long-term impact will depend on the bank’s corrective actions and restoration of trust.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.