Foreign institutional investors increased their holdings in only a handful of banking stocks during the June 2026 quarter. According to reports from Equitymaster.com, the scan of listed banks found only a few where FIIs raised their stakes during the April-June 2026 period. Rising FII ownership should be viewed as a starting point rather than a sole reason to invest in a bank stock, as institutional buying can signal confidence but investors should always assess fundamental metrics, asset quality, earnings trajectory and valuations before making investment decisions.
Jammu & Kashmir Bank, headquartered in Srinagar, has a strong presence across Jammu & Kashmir and an expanding footprint across India. The governments of Jammu & Kashmir and Ladakh are the bank's promoters, collectively holding a 59.4% stake. FIIs increased their holding from 8.4% in March 2026 to 9.4% in April-June 2026. The bank has staged a remarkable turnaround over the past few years, driven by operational and strategic initiatives including reorganized clusters, dedicated verticals for deposits and cross-selling, and co-lending arrangements. After reporting losses in FY20, the bank has delivered higher net profits every year since, with the stock climbing from around ₹12-13 in March 2020 to about ₹184.
Established in 1929 in Thrissur, Kerala, South Indian Bank has evolved into a technology-driven, pan-India bank while retaining strong southern India presence. FIIs increased their stake by 1.2 percentage points to 25.4% in June 2026. The bank reported a record net profit of ₹14.55 billion for FY26, up 12% from ₹13.03 billion a year earlier. Total deposits rose 15% to ₹1,233.46 billion. Asset quality showed significant improvement with gross NPAs declining from 3.2% to 1.43%, while net NPAs fell from 0.92% to 0.29%. The annual slippage ratio stood at 72 basis points.
DCB Bank, originally established as a cooperative institution in 1930 and converted into a scheduled commercial bank in 1995, operates a nationwide branch network. FIIs increased their holding from 12.7% in March 2026 to 13.5% in June 2026. The bank reported its highest-ever quarterly profit after tax of ₹2.06 billion, while full-year profit reached a record ₹7.32 billion. This marked the third consecutive quarter of record quarterly earnings. Operational performance remained strong with advances growing 18% year-on-year and deposits rising 21% year-on-year. Management has reiterated its strategy of rebalancing mortgage portfolio and highlighted improvement in asset quality with slippage ratio declining to 2.28% from 3.09%.
