RBI gives nod to HDFC Bank's arms to acquire up to 9.5% in IndusInd Bank

The Reserve Bank of India (RBI) has granted approval to HDFC Bank to acquire up to 9.5 per cent in IndusInd Bank through its group entities — HDFC Mutual Fund, HDFC Life Insurance, HDFC ERGO General Insurance, HDFC Pension Fund and HDFC Securities.

 

“We wish to inform you that the RBI, vide its letter, has given its approval to the Bank (being promoter/sponsor of its group entities viz. HDFC Mutual Fund, HDFC Life Insurance, HDFC ERGO General Insurance, HDFC Pension Fund and HDFC Securities) to acquire ‘aggregate holding’ of up to 9.50 per cent of the paid-up share capital or voting rights in IndusInd,” the bank said in an exchange notification.

 

 

Having said that, the bank said it does not intend to invest in IndusInd, and the application was made to the RBI since the “aggregate holding” of bank group entities was likely to exceed the prescribed limit of 5 per cent.

 

The RBI approval to HDFC Bank to increase its stake in IndusInd Bank through its group entities is valid for a year, that is, till December 14, 2026.

 

“The Bank needs to ensure that the ‘aggregate holding’ in IndusInd does not exceed 9.50 per cent of the paid-up share capital or voting rights of IndusInd, at all times,” it said.