RBI allows HDFC Bank group entities to hold up to 9.95% in ICICI Bank, Kotak Mahindra Bank

In its exchange filing, HDFC Bank said, "The RBI, vide its letters dated May 6, 2026, has given its approval to the Bank (being the promoter/sponsor of its group entities, viz., HDFC Mutual Fund, HDFC Life Insurance Company Limited, HDFC ERGO General Insurance Company Limited, HDFC Pension Fund Management Limited and HDFC Securities Limited) to acquire an 'aggregate holding' of up to 9.95% of the paid-up share capital or voting rights in ICICI and Kotak."

"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., until May 5, 2027.

Further, the bank needs to ensure that the “aggregate holding” in ICICI and Kotak does not exceed 9.95% of the paid-up share capital or voting rights of ICICI and Kotak, at all times," the filing added.

Here is what it means

This means that HDFC Bank, along with its subsidiaries such as HDFC Mutual Fund, HDFC Life, HDFC ERGO, HDFC Pension Fund, and HDFC Securities, can collectively own up to a 9.95% stake in ICICI Bank and Kotak Mahindra Bank.

“Aggregate holding” means the combined ownership of all these HDFC Group entities together — not each entity individually.

The approval is valid until May 5, 2027, allowing the group flexibility to increase or maintain holdings, which may affect strategic partnerships during this period.

RBI has also clarified that the total stake must never exceed 9.95% at any time.

Does this mean HDFC Bank is acquiring ICICI or Kotak?

No.

This is not an acquisition or takeover. It is only a regulatory approval allowing HDFC Group entities to hold up to a 9.95% stake, which could happen through the following:

• mutual fund investments,

• insurance investments,

• treasury investments, or

• other market purchases.