HDFC Bank gets RBI approval to acquire up to 9.5% 'aggregate holding' in IndusInd Bank; stocks in focus

Shares of HDFC Bank Ltd., India's largest private sector lender, and IndusInd Bank Ltd

. will be in focus on Tuesday, December 16, after the former received approval from the Reserve Bank of India, to acquire aggregate holding of up to 9.5% in IndusInd Bank.

In an exchange filing on Monday night, HDFC Bank stated that being the promoter or sponsor of its group entities such as HDFC MF, HDFC Life Insurance, HDFC ERGO General Insurance, HDFC Pension Fund, and HDFC Securities, it has received approval from the RBI to acquire "aggregate holding" of up to 9.5% of the paid-up share capital or voting rights in IndusInd Bank.

The said approval is valid for a period of one year, or until December 14, 2026. HDFC Bank will have to ensure that the "aggregate holding" does not exceed 9.5% of the total paid-up share capital of IndusInd Bank.

As per the Reserve Bank of India (Commercial Banks - Acquisition and Holding of shares or voting rights) Directions, 2025, "aggregate holding" means shareholding by the bank, body corporate under the same management, control, mutual funds, trustees, promoter group entities etc.

"In view of the same, whilst the bank does not intend to invest in IndusInd, since the aggregate holding of bank group entities is likely to exceed the prescribed limit of 5%, an application seeking approval of the RBI for increase in investment limits was made," HDFC Bank's filing stated.

HDFC Bank went on to add that since the RBI directions are applicable to the bank, it made the application to the RBI on behalf of group entities.

As of the September quarter shareholding pattern, HDFC Midcap Fund, part of HDFC Mutual Fund, owned a 4.03% stake in IndusInd Bank, valued at ₹2,668 crore as of IndusInd Bank's closing price on Monday. Mutual Funds cumulatively hold close to 23% stake in IndusInd Bank.

Government of Singapore, Government Pension Fund Global, BNP Paribas, LIC are some of the other prominent investors in IndusInd Bank at the end of the September quarter.

Shares of IndusInd Bank ended 0.4% higher on Monday at ₹849.8. The stock is down 12% so far in 2025. On the flip side, shares of HDFC Bank ended 0.6% lower on Monday at ₹995, and have gained close to 12% so far in 2025.