Foreign Institutional Investors (FIIs) have been selling their holdings in frontline private sector banks such as ICICI Bank and HDFC Bank, while more or less retaining their public sector bank holdings, indicate shareholding data for the quarter ended September 2008.
ICICI Bank and HDFC Bank have been on their selloff list since December 2007 as they were trying to tide over the subprime default crisis.
FIIs have been selling their shares not only on local bourses but also on overseas exchanges in the form of depository receipts. For example, the FIIs holding in ICICI Bank’s ADR declined from 30 per cent in December 2007 to 28.46 per cent as on September 2008.
Their holding in ICICI Bank has decline from 39.97 per cent to 36.44 per cent since December 2007, of which 2.41 per cent holding was sold during July-September quarter.
In the case of HDFC Bank, FIIs’ holding in depository fell sharply from 22.06 per cent in December 2007 to 18.92 per cent now. The FIIs holding in local shares also declined from 28 per cent to 27.1 per cent.
