MFs hungry for bigger slice of banking pie amid growing investor inflows

Seek to exceed RBI's 5% ownership threshold

Amid growing investor inflows, mutual funds (MFs) are eyeing a larger slice of the banking sector.

In the past few years, few of the major fund houses have approached the Reserve Bank of India (RBI) seeking permission to hold more than a 5 per cent stake in banking sector stocks.

As of the end of August, three fund houses held over 5 per cent ownership in one or more banks.

SBI MF possessed more than 5 per cent in CSB Bank, Equitas Small Finance Bank (SFB), HDFC Bank, and ICICI Bank, with the highest holding being in CSB Bank at