HDFC Bank Gets RBI Approval for 9.5% Holding in IndusInd Bank The central bank has specified that the total holding should not exceed 9.50 percent of the paid up share capital or voting rights of IndusInd Bank at any point in time.
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HDFC Bank has received approval from the Reserve Bank of India (RBI) to allow its group entities to hold up to 9.50 percent stake in IndusInd Bank.
The approval was conveyed through a letter dated December 15 and will remain valid for a period of one year until December 14, 2026.
The central bank has specified that the total holding should not exceed 9.50 percent of the paid up share capital or voting rights of IndusInd Bank at any point in time.
The approval applies to the aggregate holding of HDFC Bank and its group entities in which the bank acts as promoter or sponsor. 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.
The Reserve Bank has clarified that aggregate holding includes shares held directly by the bank, as well as those held by bodies corporate under common management or control, mutual funds, trustees and promoter group entities, as defined under the RBI Directions issued in 2025.
HDFC Bank has stated that it does not plan to invest directly in IndusInd Bank. However, the combined investments of its group entities were expected to cross the earlier threshold of 5 percent. As a result, the bank applied to the Reserve Bank for permission to increase the permissible limit. The application was submitted on October 24, 2025, on behalf of its group entities, since the regulatory directions apply to the bank.
The bank also clarified that investments by its group entities are made in the normal course of their business activities.
