HDFC Bank has received approval from the Reserve Bank of India (RBI) to allow its group entities to collectively hold up to a 9.50 per cent stake in IndusInd Bank.  

The approval was granted through a letter dated December 15 and will be valid for one year, until December 14, 2026.

The RBI has clearly stated that the total holding of HDFC Bank and its group entities must not exceed 9.50 per cent of IndusInd Bank’s paid-up share capital or voting rights at any point during this period.

This approval applies to the combined, or “aggregate,” holding of HDFC Bank and the entities where it acts as a promoter or sponsor.

“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,” the private lender said in its regulatory filing.

These include HDFC Mutual Fund, HDFC Life Insurance Company, HDFC ERGO General Insurance Company, HDFC Pension Fund Management, and HDFC Securities.

Under the Reserve Bank of India’s Commercial Banks (Acquisition and Holding of Shares or Voting Rights) Directions, 2025, aggregate holding includes shares held by the bank itself, companies under the same management or control, mutual funds, trustees, and other promoter group entities.

HDFC Bank clarified that it does not plan to invest directly in IndusInd Bank. However, as the combined investments of its group companies were likely to cross the earlier limit of 5 per cent, the bank sought approval from the RBI to raise the permissible investment cap.

The application for this approval was submitted on October 24, 2025, on behalf of the group entities, as the RBI regulations apply to the bank.

HDFC Bank also said that the investments made by its group companies are part of their regular business activities.