According to data highlighted by CNBC-TV18, as of July 31, 2026, Indian mutual funds have varying degrees of exposure to private sector banks.

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. Given the significant weight of financial stocks in benchmark indices such as the Nifty 50 and BSE Sensex, banking and financial services are usually one of the largest sector allocations for diversified equity funds in India. Because both index-linked funds and actively managed funds hold substantial banking stocks, divergences in the performance of individual private lenders can noticeably affect overall fund returns. Therefore, fund-level exposure data has become a routine focus for investors reviewing monthly portfolio disclosures.

The stock performance of these private lenders diverged in 2026. According to the report, HDFC Bank fell 30% year-to-date, while ICICI Bank rose 6.4% over the same period, and Axis Bank fell 0.66% year-to-date. Such a huge gap among the industry's major lenders underscores that exposure to "private banks" as a group does not translate into uniform returns, and fund-level results depend on the weighting of portfolios across individual bank stocks.

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