HDFC Bank's subsidiaries have received approval from the Reserve Bank of India (RBI) to acquire up to 9.5% stake in the IndusInd Bank.
In an exchange filing late on Monday, India's largest private sector lender by market value, said the approval is valid for a year from the RBI's letter dated 15 December 2025.
Group entities including HDFC Mutual Fund, HDFC Life Insurance, HDFC Pension Fund, HDFC ERGO General Insurance, HDFC Pension Fund, and HDFC Securities can now hold an “aggregate holding” of up to 9.5% of the paid-up share capital or voting rights in IndusInd Bank.
HDFC Bank emphasized that it does not plan to make a direct investment. The approval was sought because the cumulative holdings of its group companies were expected to exceed the previous regulatory cap of 5%.
The application, filed on 24 October, was made on behalf of the group entities in accordance with the RBI’s Commercial Banks (Acquisition and Holding of Shares or Voting Rights) Directions, 2025.
Under RBI regulations, anyone seeking to purchase shares that would result in a major shareholding, defined as 5% or more of a bank’s paid-up capital or voting rights, must obtain prior approval.
“We further wish to inform you that the said approval is valid for a period of one year from the date of RBI’s letter, i.e., till December 14, 2026. Further the Bank needs to ensure that the “aggregate holding” in IndusInd does not exceed 9.50% of the paid-up share capital or voting rights of IndusInd, at all times,” the bank said in the filing.
According to September-quarter shareholding data, HDFC Midcap Fund, a scheme under HDFC Mutual Fund, owned a 4.03% stake in IndusInd Bank, valued at around ₹2,668 crore based on Monday’s closing price. Collectively, mutual funds hold nearly 23% of the bank’s equity. Other key investors include the Government of Singapore, Government Pension Fund Global, BNP Paribas, and Life Insurance Corp. of India.
HDFC Bank, IndusInd Bank share price today
Both HDFC Bank and IndusInd Bank were marginally lower in Tuesday’s trading session after the RBI update.
At 10:10 am, HDFC Bank shares were down 0.10% at ₹995.10 on the National Stock Exchange, while IndusInd Bank fell 0.73% to ₹845 per share.
Over the past month, IndusInd Bank stock has declined just over 1% and 15.45% in the past year. HDFC Bank, in contrast, has remained relatively steady, slipping 0.09% in the past month but gaining 6.77% over the year.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
