IndusInd Bank shares: HDFC Bank gets RBI nod to buy aggregate holding of up to 9.5%

Shares of IndusInd Bank and HDFC Bank are in focus on Tuesday morning after the latter received an approval from the Reserve Bank of India to acquire “aggregate holding” of up to 9.50 per cent of the paid-up share capital or voting rights in the former. That said, the bank clarified that it does not intend to invest in IndusInd Bank. Instead, it would be investments by HDFC Bank group entities. 

HDFC Bank has several group entities including HDFC Mutual Fund, HDFC Life Insurance Company Limited, HDFC ERGO General Insurance Company Limited, HDFC Pension Fund Management Limited and HDFC Securities Limited. It held 4.23 per cent stake in IndusInd Bank at the end of September quarter, as per stock exchanges' quarterly shareholding pattern.  

"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 per cent of the paid-up share capital or voting rights of IndusInd, at all times," HDFC Bank said.

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 per cent, an application seeking approval of RBI for increase in investment limits was made," HDFC Bank said, 

It said 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.

"Please also note that the investments by HDFC Bank group entities are in the normal course of business of the respective group entities," HDFC Bank said.