HDFC BankNSE -0.82 % is one of the most expensively valued lenders but that is not crimping fund managers’ voracious appetite for its shares. Domestic mutual funds’ total holding of HDFC Bank is worth Rs 48,000 crore — the highest ever — because the lender’s clean books compared to its peers and expectations of steady growth have encouraged investors to ignore record high share valuations.
For the month ended March 31, 2018, 64 equity mutual fund schemes out of 145 (in the large and midcap category) had HDFC Bank as the top holding in their portfolio, as per data from Accord Fintech. In March 2017, 49 schemes had this stock as their top holding in their portfolio. In March 2016, HDFC Bank was the biggest holding in 37 schemes.
