HDFC Bank gets RBI nod to hold upto 9.50% stake in IndusInd Bank

HDFC Bank said that the Reserve Bank of India (RBI) has given its approval to the bank to acquire 'aggregate holding' of up to 9.50% of the paid-up share capital or voting rights in IndusInd Bank.

The said approval is valid for a period of one year from the date of RBIs letter, i.e., till 14 December 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.

HDFC Bank is the promoter / sponsor of its group entities viz HDFC Mutual Fund, HDFC Life Insurance Company, HDFC ERGO General Insurance Company, HDFC Pension Fund Management and HDFC Securities.

 

The term 'aggregate holding includes shareholding by the bank, body corporate under the same management/ control, mutual funds, trustees, promoter group entities, etc.

In view of the same, whilst the bank had no intention to invest in IndusInd, since the 'aggregate holding of banks group entities is likely to exceed the prescribed limit of 5%, an application seeking approval of RBI for increase in investment limits was made.

Further, since the RBI Directions are applicable to the bank, the bank had made the application to RBI on behalf of the group entities, on 24 October 2025.

HDFC Bank is India's largest private sector lender. As of 30 September 2025, the bank's distribution network was at 9,545 branches and 21,417 ATMs across 4,156 cities / towns. In addition, the bank has 15,253 business correspondents, which are primarily manned by common service centres (CSC).

The bank reported 10.8% rise in net profit to Rs 18,640 crore on a 10.3% increase in net revenue to Rs 45,900 crore in Q2 FY26 as compared with Q2 FY25.

The scrip rose 0.06% to currently trade at Rs 996.40 on the BSE.

Meanwhile, shares of Indusind Bank shed 0.39% to currently trade at Rs 847.95.

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