Tag: HDFC

Categories
Corporate

HDFC, ICICI Prudential impose curbs on large gold ETF investments

Two of India’s largest asset management companies, HDFC Mutual Fund and ICICI Prudential Mutual Fund, have imposed restrictions on large investments in their gold exchange-traded funds (ETFs), citing exceptional demand for gold-linked investment products. The move comes after a sharp rally in gold prices and a surge in investor interest in safe-haven assets.

HDFC Mutual Fund was the first to announce restrictions. Beginning June 8, the fund house stopped accepting direct subscriptions of ₹25 crore or more into its HDFC Gold ETF. It also introduced a cap on lump-sum investments in its Gold ETF Fund of Fund (FoF), limiting investments to ₹10 lakh per PAN per calendar month. The restrictions are temporary and will remain in place until further notice.

Soon after, ICICI Prudential Mutual Fund announced similar measures for its Gold ETF. The fund house restricted large direct subscriptions from June 5, becoming the second major asset manager to curb inflows into gold ETFs amid rising demand.

Importantly, the restrictions do not affect systematic investment plans (SIPs). Investors who regularly invest through SIPs can continue their contributions without any changes. Small investors purchasing ETF units through stock exchanges are also largely unaffected by the new limits.

Industry experts say the restrictions are intended to help fund managers manage large inflows efficiently and maintain portfolio stability. Gold ETFs invest in physical gold, and a sudden surge in subscriptions can create operational and liquidity challenges. Fund houses may also be responding to broader economic considerations linked to gold imports and market conditions.

Gold prices have risen significantly over the past year amid global economic uncertainty, geopolitical tensions and strong investor demand. As a result, gold ETFs have attracted substantial inflows from investors seeking portfolio diversification and protection against market volatility.

Also Read: Vietnam’s Green SM launches EV taxi service in Delhi-NCR

Categories
1 Minute-Read

HDFC Bank shares fall further as HSBC cuts target

Shares of HDFC Bank fell for a fourth consecutive session, losing about 10 % over four days, as investor caution grew. The slide follows the recent resignation of the bank’s part‑time chairman and ongoing market pressures linked to global uncertainties.

Adding to the concerns, HSBC lowered its 12‑month price target for the bank from ₹1,070 to ₹990, citing valuation compression risks, though it maintained a ‘Buy’ rating.

Experts say the stock’s performance in upcoming quarters will be crucial for restoring investor confidence and stabilizing the market sentiment around India’s largest private lender.

Categories
Corporate

RBI clears HDFC Group to buy 9.5% in IndusInd

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.

Also Read: ICICI AMC IPO gets 1.5× subscription in 2 days

Categories
1 Minute-Read

RBI fines HDFC bank ₹91 lakh for compliance lapses

The Reserve Bank of India has fined HDFC Bank ₹91 lakh for multiple compliance lapses identified during its supervisory inspection of the bank’s 2023–24 financials.

The RBI found issues in how the bank followed rules under the Banking Regulation Act, including irregularities in applying interest-rate benchmarks on loans, shortcomings in outsourcing practices, and gaps in KYC (Know Your Customer) procedures.

The central bank clarified that the penalty is purely for regulatory non-compliance and does not affect the validity of customer transactions. HDFC Bank is expected to strengthen its internal controls to meet all supervisory and operational standards.

Categories
1 Minute-Read

HDFC AMC shares fall on bonus issue

HDFC Asset Management Company (HDFC AMC) shares fell nearly 50% on November 26 as the stock went ex‑bonus following a 1:1 bonus issue.

Investors received one bonus share for every share held, halving the stock price but leaving overall investment value unchanged.

The correction is purely mechanical and not a reflection of performance. HDFC AMC reported a robust Q2 FY26, with revenue rising 16% to Rs 1,027.4 crore and net profit up 25% at Rs 718.4 crore.

Analysts say the slump is temporary, and long-term investors need not worry, as the company’s fundamentals remain solid.