HDFC Bank gets RBI nod to raise holding in IndusInd Bank up to 9.5%

Mumbai (Maharashtra) [India], December 16 (ANI): HDFC Bank has received approval from the Reserve Bank of India (RBI) to allow its group entities to collectively hold up to 9.50 per cent stake in IndusInd Bank, the bank informed the stock exchange in a filing.
The bank stated that RBI granted permission to HDFC Bank, which is the promoter and sponsor of several group entities, to acquire an "aggregate holding" of up to 9.50 per cent of the paid-up share capital or voting rights in IndusInd Bank.
These group entities include HDFC Mutual Fund, HDFC Life Insurance Company Limited, HDFC ERGO General Insurance Company Limited, HDFC Pension Fund Management Limited and HDFC Securities Limited.
It stated, "We wish to inform you that the RBI vide its letter dated December 15, 2025, has given its approval to the Bank ........to acquire "aggregate holding" of up to 9.50 per cent of the paid-up share capital or voting rights in IndusInd."
The approval given by the central bank will remain valid for a period of one year, starting from the date of the RBI's letter. This means the approval will be valid till December 14, 2026.
During this entire period, HDFC Bank has to ensure that the total combined holding of its group entities in IndusInd Bank does not cross the 9.50 per cent limit at any time.
HDFC Bank clarified that the approval is linked to rules issued by the Reserve Bank of India under the "Commercial Banks - Acquisition and Holding of Shares or Voting Rights" Directions, 2025.
As per these RBI directions, the term "aggregate holding" not only includes shares held directly by the bank, it also includes shares held by companies under the same management or control, mutual funds, trustees, and other promoter group entities.
The bank further explained that it does not intend to make a direct investment in IndusInd Bank. However, the combined holding of HDFC Bank's group entities is likely to cross the earlier prescribed limit of 5 per cent. Because of this, an application was made to the RBI seeking permission to increase the investment limit.
Since the RBI Directions apply directly to HDFC Bank, the bank submitted the application to the central bank on behalf of its group entities on October 24, 2025. This step was taken to ensure full compliance with regulatory rules and to avoid any breach of the prescribed limits.
The RBI's approval allows HDFC Bank's group companies to continue their investments within the allowed limit while staying aligned with regulatory requirements.
The bank has also made it clear that it will closely monitor the aggregate holding to ensure it remains within the approved ceiling of 9.50 per cent.
The share of HDFC Bank is trading at Rs 995 on the National Stock Exchange. (ANI)