RBI Allows HDFC Bank Group To Raise Aggregate Stake In IndusInd Bank To 9.5%, Stocks In Focus

HDFC Bank Share Price: The Reserve bank of India has granted approval to HDFC Bank to acquire aggregate holding of up to 9.5% in IndusInd Bank. Thus, shares of both HDFC Bank and IndusInd Bank will remain

in focus in Tuesday’s session, December 16.

“We wish to inform you that the RBI vide its letter dated December 15, 2025, has given its approval to the Bank (being promoter / sponsor of its group entities viz HDFC Mutual Fund, HDFC Life Insurance Company Limited, HDFC ERGO General Insurance Company Limited, HDFC Pension Fund Management Limited and HDFC Securities Limited ) to acquire “aggregate holding” of up to 9.50% of the paid-up share capital or voting rights in IndusInd, HDFC Bank informed in the filing.

The lender has a period of one year from the date of RBI’s letter, i.e. till December 14, 2026. Moreover, the bank can’t exceed 9.50 per cent threshold.

As per RBI, ‘aggregate holding’ includes 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 RBI for increase in investment limits was made. Further, since the RBI Directions are applicable to the Bank, the Bank had made the application to RBI on behalf of the group entities, on October 24, 2025,” said in the filing.

As per the September quarter shareholding pattern, HDFC Midcap Fund, part of HDFC Mutual Fund, held a 4.03% stake in IndusInd Bank, valued at around Rs 2,668 crore based on the bank’s closing price on Monday.

Overall, mutual funds together own nearly 23% of IndusInd Bank. Other key investors at the end of the September quarter include the Government of Singapore, Government Pension Fund Global, BNP Paribas and LIC.