HDFC Bank announced on Monday that it’s group entities have received approval from Reserve Bank of India (RBI) to acquire 9.5% stake in the IndusInd Bank.
In an exchange filing on Monday, HDFC Bank clarified that the approval applies to the aggregate shareholding of its group entities – HDFC Mutual Fund, HDFC Life Insurance, HDFC ERGO General Insurance, HDFC Pension Fund, and HDFC Securities.
The bank emphasized that it does not plan to make a direct investment in IndusInd Bank. However, as the cumulative holdings of its group companies were expected to cross the earlier regulatory cap of 5%, HDFC Bank sought permission from the RBI to increase the limit. The application, filed on October 24, 2025, was made on behalf of the group entities, in line with the RBI’s Commercial Banks (Acquisition and Holding of Shares or Voting Rights) Directions, 2025, which govern the bank.
According to the filing, the total stake cannot exceed 9.5% of IndusInd Bank’s paid-up share capital or voting rights at any time. The approval is valid for a one-year period, ending December 14, 2026, and the RBI has mandated that the allowed shareholding must be acquired within this timeframe, failing which the approval will automatically lapse.
“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 bank said in the filing.
According to the September-quarter shareholding data, HDFC Midcap Fund, a scheme under HDFC Mutual Fund, owned a 4.03% stake in IndusInd Bank, valued at around ₹2,668 crore based on Monday’s closing price. Collectively, mutual funds hold nearly 23% of the bank’s equity. Other key investors include the Government of Singapore, Government Pension Fund Global, BNP Paribas, and LIC.
HDFC Bank, IndusInd Bank share price today
Both banking stocks – HDFC Bank and IndusInd Bank were marginally trading lower in Tuesday’s trading session after the RBI update on Monday.
At 10:10 am, the HDFC Bank share price was down 0.10% to ₹995.10 apiece on NSE on Tuesday, December 16. Meanwhile, IndusInd Bank share price fell 0.73% to ₹845 on NSE.
IndusInd Bank share price has been under pressure lately as the banking stock has descended over 1% in a month and 15.45% in last one year. Meanwhile, HDFC Bank share price has remained volatile in the near-term as the stock has marginally fallen over 0.09% in a month, however, has gained 6.77% in last one year.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
