“RBI Approves HDFC Bank Group’s Stake Increase in IndusInd Bank to 9.5%; Shares in Spotlight”

RBI Approves HDFC Bank Group’s Stake in IndusInd Bank Up to 9.5%.

The Reserve Bank of India (RBI) has approved HDFC Bank to acquire an aggregate holding of up to 9.5% in IndusInd Bank, keeping shares of both banks in focus in Tuesday’s trading session, December 16.

In a filing, HDFC Bank said the RBI, in its letter dated December 15, 2025, granted approval for the bank—and its group entities, including HDFC Mutual Fund, HDFC Life Insurance, HDFC ERGO, HDFC Pension Fund, and HDFC Securities—to hold up to 9.5% of IndusInd Bank’s paid-up capital or voting rights. The approval is valid for one year, until December 14, 2026, with the ceiling strictly capped at 9.5%.

According to RBI, “aggregate holding” includes shareholding by the bank, its controlled entities, mutual funds, trustees, and promoter group entities. HDFC Bank clarified that while it does not intend to invest directly, its group’s holding is likely to exceed the 5% threshold, prompting the application for an increased limit, originally submitted on October 24, 2025.

As per the September quarter shareholding pattern, HDFC Midcap Fund held a 4.03% stake in IndusInd Bank, worth around ₹2,668 crore. Overall, mutual funds collectively own nearly 23% of IndusInd Bank. Other major investors include the Government of Singapore, Government Pension Fund Global, BNP Paribas, and LIC.