The Reserve Bank of India (RBI) has given its approval to the HDFC Bank to acquire up to 9.50% stake in IndusInd Bank. Now, the group entities of the HDFC Bank are allowed to hold equity stakes in IndusInd Bank. This approval was granted through a letter from the RBI, dated December 15, 2025. The stakeholding allowance for HDFC Bank will be valid for one year, until December 14, 2026. The RBI has also said in the letter that the total holding must not be more than 9.50% of IndusInd Bank's paid-up share capital or voting rights at any time.
As per the approval, both the HDFC Bank and its related companies are allowed to hold the total stakes of IndusInd Bank combinedly (aggregate holding), where HDFC Bank acts as the promoter or sponsor. The related companies of the HDFC Bank include HDFC Mutual Fund, HDFC Life Insurance Company, HDFC ERGO General Insurance Company, HDFC Pension Fund Management and HDFC Securities Limited.
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According to the Reserve Bank of India’s rules for Commercial Banks- Acquisition and Holding of Shares or Voting Rights in 2025, “aggregate holding” refers to the total amount of shares owned. This includes shares held by the bank itself, by companies under the same management or control, mutual funds, trustees and entities in the promoter group.
The HDFC Bank stated, while clarifying that it does not plan to invest directly in IndusInd Bank. However, the combined investments of its group companies are expected to exceed the existing investment limit of 5%. To address this, HDFC Bank has asked the RBI to raise the limit. This request was made on October 24, 2025, by the HDFC Bank, on behalf of the group companies, because the RBI rules apply to the bank. The bank also said that the investments made by its group companies are a part of their regular business activities.
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