Daijiworld Media Network - Mumbai

Mumbai, Dec 17: The Reserve Bank of India (RBI) has approved HDFC Bank to acquire and hold an aggregate stake of up to 9.5 per cent in IndusInd Bank, in line with regulatory norms governing significant shareholding in banks. The approval, dated December 15, 2025, was disclosed by IndusInd Bank in a regulatory filing on Tuesday.

Clarifying the development, HDFC Bank said it does not intend to make a direct investment in IndusInd Bank. “As mentioned in the stock exchange intimation, approval from RBI for increasing the investment in IndusInd Bank from 5 per cent to 9.5 per cent was made by HDFC Bank being the banking entity regulated by RBI (on behalf of its group companies). However, HDFC Bank does not intend to make any investment in IndusInd Bank,” a spokesperson said.

The proposed investments will instead be undertaken by HDFC Bank’s group companies, as detailed in the exchange filing. “These investments would be made by the respective companies in their normal course of business and from the open market,” the spokesperson added.

Sources said the RBI approval is primarily aimed at facilitating portfolio investments by HDFC group entities, particularly its mutual fund and insurance arms. Market participants view the potential holding as purely financial rather than strategic, noting that RBI norms and concentration limits make any takeover-style transaction highly unlikely.

The approval permits HDFC Bank, as the sponsor and promoter of its broader financial services group, to hold up to 9.5 per cent of IndusInd Bank’s paid-up share capital or voting rights on an aggregate basis.