HDFC Bank Receives Nod to Acquire Up to 9.5% Stake in IndusInd Bank

HDFC Bank has been given the green light by the Reserve Bank of India (RBI) for its group companies to collectively increase their holdings in IndusInd Bank. The approval allows these entities to possess up to 9.5% of IndusInd Bank's shares.

The RBI's authorization, communicated via a letter dated December 15, is valid for one year, expiring on December 14, 2026. This permits aggregate investments by HDFC Bank's associated entities, including HDFC Mutual Fund and HDFC Life Insurance Company Limited, among others.

The increase was sought because the projected combined investments of the HDFC group were expected to exceed the previously permitted limit of 5%. According to the RBI, the total stake held by HDFC Bank's group companies must not exceed 9.5% of IndusInd Bank's paid-up share capital or voting rights at any point.

The term “aggregate holding,” as defined by the RBI's regulations concerning the acquisition and holding of shares or voting rights by commercial banks, encompasses shareholding by the bank itself, related corporate bodies, mutual funds, trustees, and promoter group entities.

While HDFC Bank itself does not plan to directly invest in IndusInd Bank, it submitted the application to the RBI on October 24, 2025, on behalf of its group companies. This was necessary because the combined investments of these entities were anticipated to surpass the existing 5% threshold. HDFC Bank has clarified that these investments are part of the normal course of business for its group entities.