HDFC Bank gets RBI's nod to acquire 'aggregate holding' of up to 9.50% in IndusInd Bank; shares flat

The banking giant, in its regulatory filing on Monday, said that the Reserve Bank of India (RBI) has given its approval to the bank (being the promoter/sponsor of its group entities) to acquire an “aggregate holding” of up to 9.50% of the paid-up share capital or voting rights in IndusInd Bank.

The 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.

"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 filing added.

HDFC Bank further said, "Kindly note that as per the Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025 (“RBI Directions”), ‘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 does not intend to invest in IndusInd, since the “aggregate holding” of bank group entities is likely to exceed the prescribed limit of 5%, an application seeking approval of RBI for an increase in investment limits was made, it added.

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 October 24, 2025.

HDFC Bank share price

Shares of HDFC Bank have given around 3% returns in the past six months and 11.6% so far in 2025. In the past 12 months, the stock has risen 6.69% on the NSE (as of the December 15 closing).

IndusInd Bank shares, on the other hand, have risen nearly 3.5% over the past six months but have fallen over 12% YTD.