RBI Approves HDFC Bank Group to Acquire Up to 9.5% Stake in IndusInd Bank
The Reserve Bank of India (RBI) has granted approval to HDFC Bank Limited to enable its group entities to acquire an aggregate holding of up to 9.50% of the paid-up share capital or voting rights in IndusInd Bank Limited, the private sector lender informed stock exchanges on Monday.
The approval, communicated by RBI through its letter dated December 15, 2025, is valid for one year, i.e., until December 14, 2026. HDFC Bank is required to ensure that the aggregate holding does not exceed the approved limit at any point during the validity period.
The approval covers investments by HDFC Bank group entities, including HDFC Mutual Fund, HDFC Life Insurance Company, HDFC ERGO General Insurance Company, HDFC Pension Fund Management Limited, and HDFC Securities Limited. Under RBI regulations, “aggregate holding” includes shareholding by the bank, its promoter group entities, mutual funds, trustees, and other bodies under common control.
HDFC Bank clarified that it does not intend to directly invest in IndusInd Bank. However, as the cumulative shareholding of its group entities was likely to exceed the regulatory threshold of 5%, the bank had applied to RBI on October 24, 2025, seeking approval for an enhanced investment limit in compliance with the RBI (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025.
The bank also noted that the investments by its group entities are being made in the normal course of business of their respective operations.