HDFC Bank gets RBI approval to raise group holding in IndusInd Bank to 9.5 percent

HDFC Bank has received approval from the Reserve Bank of India (RBI) to allow its group entities to collectively hold up to 9.5 percent stake in IndusInd Bank. The bank informed stock exchanges that the permission was granted through an RBI letter dated December 15, 2025 .

The approval applies to the combined shareholding of HDFC Bank’s group companies, including HDFC Mutual Fund, HDFC Life Insurance, HDFC ERGO General Insurance, HDFC Pension Fund Management and HDFC Securities. Importantly, HDFC Bank clarified that it does not plan to make a direct investment in IndusInd Bank.

Under RBI’s latest regulations, investments made by a bank’s subsidiaries and affiliated entities are treated as a single or aggregate holding . Earlier, this combined limit was capped at 5 percent . However, as investments by HDFC group entities in IndusInd Bank were likely to exceed this threshold through routine market activity, the bank sought prior approval to remain compliant with regulatory norms.

The RBI has now permitted the aggregate holding to go up to 9.5 percent , subject to strict conditions. The approval is valid for one year , ending on December 14, 2026. During this period, HDFC Bank must ensure that the combined holding of all its group entities does not breach the approved ceiling at any time.

The central bank’s decision is in line with the “Commercial Banks Acquisition and Holding of Shares or Voting Rights Directions, 2025,” which aim to prevent excessive influence or control of one bank over another while allowing regulated institutional investments.

The move is seen as a compliance driven measure , rather than a strategic stake acquisition or control attempt. For customers of both banks, there will be no change in services or operations, as the approval relates only to investment limits and regulatory oversight.

Shares of HDFC Bank were trading at Rs 995 on the National Stock Exchange on Tuesday.