HDFC Bank gets nod to acquire aggregate holding of up to 9.5% stake in IndusInd Bank; group entities include HDFC Mutual Fund, HDFC Life Insurance Company, HDFC ERGO General Insurance Company and HDFC Securities.
HDFC Bank has received approval from the Reserve Bank of India (RBI) to acquire aggregate holding of up to 9.50% stake in IndusInd Bank.
The country’s largest private lender said in a regulatory filing on Monday that being the promoter or sponsor of group entities including HDFC Mutual Fund, HDFC Life Insurance Company, HDFC ERGO General Insurance Company and HDFC Securities, it has received nod 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 approval will remain valid for one year, until 14 December 2026.
As per the Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025, the term “aggregate holding” includes shareholding by the bank itself, bodies corporate under the same management or control, mutual funds, trustees, and promoter group entities.
HDFC Bank said it does not intend to invest directly in IndusInd Bank. But since aggregate holding of the bank’s 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.
As of 30 September, HDFC Midcap Fund, part of HDFC Mutual Fund, held a 4.03% stake in IndusInd Bank. Mutual Funds cumulatively hold around 23% stake in IndusInd Bank.
