Mutual funds in India held varying levels of exposure to private sector banks as of July 31, 2026, according to data highlighted by CNBC-TV18.

Private lenders such as HDFC Bank, ICICI Bank, Axis Bank and Kotak Bank are among the most widely held stocks in Indian equity mutual fund portfolios. Banking and financial services is typically one of the largest sectoral allocations for diversified equity funds in India, given the significant weight of financial stocks in benchmark indices such as the Nifty 50 and the BSE Sensex. Because index-linked and actively managed funds alike carry substantial banking holdings, divergence in the performance of individual private lenders can have a noticeable effect on overall fund returns, making fund-level exposure data a routine point of scrutiny for investors reviewing monthly portfolio disclosures.

The stock performance of these private lenders has diverged in 2026. As of the report, HDFC Bank had declined 30% year-to-date, while ICICI Bank had gained 6.4% over the same period. Axis Bank had fallen 0.66% year-to-date. Such a wide gap between the sector's largest lenders underscores that exposure to "private banks" as a group does not translate into uniform outcomes, and fund-level results depend on how portfolios are weighted across individual names.

This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.

Source: CNBC-TV18