Synopsis: The Domestic mutual funds invested about ₹38,000 crore in five major Indian banks, HDFC Bank, ICICI Bank, SBI, Kotak Mahindra Bank, and Axis Bank, during March 2026, viewing the correction as an opportunity.
The Indian banking stocks witnessed a major tug-of-war in March 2026, as domestic mutual funds turned aggressive buyers while foreign institutional investors (FIIs) heavily sold off financial stocks.
Domestic mutual funds deployed around Rs. 38,000 crore into five major banking stocks in March, aggressively buying into the correction, while FIIs exited financial stocks worth about Rs. 60,655 crore amid the Iran-war-triggered market selloff. Here is the list of five major stocks in which mutual funds deployed ₹38,000 crore
Mutual funds invested around Rs. 38,000 crore across five major banks, HDFC Bank, ICICI Bank, State Bank of India (SBI), Kotak Mahindra Bank, and Axis Bank, treating the market correction as a buying opportunity.
HDFC Bank is one of India’s largest private-sector banks, founded in 1994. It offers retail banking, wholesale banking, treasury services, and digital banking solutions. Known for strong asset quality and customer service, it has a wide branch network across India and a leading position in credit cards and personal loans.
According to Prime Database, estimates suggest mutual funds deployed Rs. 17,250 crore in HDFC Bank as of March 2026, indicating strong monthly equity inflows and sustained investor participation, reflecting market confidence, liquidity support, and continued systematic investment activity.
ICICI Bank Ltd
ICICI Bank is a major Indian private-sector bank established in 1994. It provides a wide range of financial services, including retail banking, corporate banking, insurance, and investment services. It is known for innovation in digital banking and has a strong domestic and international presence through subsidiaries and branches.
According to Prime Database, estimates suggest mutual funds deployed Rs. 7,320 crore in ICICI Bank as of March 2026, indicating strong monthly equity inflows and sustained investor participation, reflecting market confidence, liquidity support, and continued systematic investment activity.
State Bank of India (SBI) Ltd
State Bank of India is the largest public-sector bank in India, founded in 1806 as the Bank of Calcutta. It provides retail, corporate, and agricultural banking services. With an extensive rural and urban network, SBI plays a key role in financial inclusion and government banking operations across the country.
According to Prime Database, estimates suggest mutual funds deployed Rs. 5,450 crore in State Bank of India as of March 2026, indicating strong monthly equity inflows and sustained investor participation, reflecting market confidence, liquidity support, and continued systematic investment activity.
Kotak Mahindra Bank Ltd
Kotak Mahindra Bank is an Indian private-sector bank founded in 2003. It offers services in retail banking, corporate banking, wealth management, and investment banking. Known for strong financial performance and prudent risk management, Kotak has grown rapidly and maintains a reputation for customer-focused digital banking solutions.
According to Prime Database, estimates suggest mutual funds deployed Rs. 4,089 crore in Kotak Mahindra Bank as of March 2026, indicating strong monthly equity inflows and sustained investor participation, reflecting market confidence, liquidity support, and continued systematic investment activity.
Axis Bank Ltd
Axis Bank is one of India’s leading private-sector banks, established in 1993. It provides services including retail banking, corporate banking, treasury operations, and international banking. The bank has a strong branch network and is recognised for expanding digital banking services and offering diverse financial products to individuals and businesses.
According to Prime Database, estimates suggest mutual funds deployed Rs. 3,892 crore in Axis Bank as of March 2026, indicating strong monthly equity inflows and sustained investor participation, reflecting market confidence, liquidity support, and continued systematic investment activity.
Foreign Institutional Investors (FIIs) pulled out heavily from Indian equities in March, with nearly every second dollar leaving Dalal Street coming from the financial sector. According to NSDL data, financials faced the sharpest pressure, with Rs. 60,655 crore, over half of the total Rs. 1.18 lakh crore outflow was withdrawn, making banking stocks the worst-hit segment.
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