The Reserve Bank of India (RBI) has granted approval to HDFC Bank and its group companies to acquire a combined stake of up to 9.5 per cent in IndusInd Bank. This regulatory clearance, issued on December 15, 2025, is valid for one year, until December 14, 2026, and comes with specific conditions regarding investment limits and timing.
The approval allows HDFC group entities, including HDFC Mutual Fund, HDFC Life Insurance, and HDFC Pension Fund, to invest in IndusInd Bank shares. However, the RBI has mandated that the total holding at any point must not exceed 9.5 per cent of the bank’s paid-up capital or voting rights, ensuring a cap on control while allowing strategic investments.
HDFC Bank clarified that it does not plan to invest directly, but the combined investments by its affiliates required the regulatory nod. The acquisition must be completed within the one-year approval period, or the permission will lapse, emphasizing the RBI’s requirement for timely execution.
This move comes amid heightened investor focus on IndusInd Bank. The private sector lender has faced challenges in recent years, including governance issues and fluctuations in performance. With HDFC group companies increasing their shareholding, it signals a vote of confidence in IndusInd Bank’s prospects and governance structure.
Market analysts view the RBI’s clearance as a strategic step that allows HDFC group entities to deepen their presence in the private banking sector without breaching regulatory norms. The development is also expected to provide stability to IndusInd Bank’s shareholding pattern, which has been under scrutiny due to previous changes in large stakes held by institutional investors.
RBI approval strengthens HDFC Bank’s group investment strategy, giving its affiliated firms the flexibility to participate in IndusInd Bank’s growth while maintaining regulatory compliance. Investors and market observers will likely watch closely as the group executes its stake acquisition over the coming months.
