HDFC Bank has received approval from the Reserve Bank of India (RBI) to invest in IndusInd Bank Limited. The approval, granted on December 15, 2025, allows HDFC Bank, along with its group entities, to acquire an “aggregate holding” of up to 9.50% of the paid-up share capital or voting rights in IndusInd. The approval is valid for one year, expiring on December 14, 2026.
RBI Approval Received
HDFC Bank announced that the Reserve Bank of India (RBI) has granted approval for the bank to make investments in IndusInd Bank Limited. The approval was conveyed via an RBI letter dated December 15, 2025.
Investment Details
The approval allows HDFC Bank (including its group entities such as 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 an “aggregate holding” of up to 9.50% of the paid-up share capital or voting rights in IndusInd.
Approval Validity
The approval granted by the RBI is valid for a period of one year from the date of the RBI’s letter, specifically until December 14, 2026. HDFC Bank must ensure that the “aggregate holding” in IndusInd does not exceed 9.50% at any time during this period.
Context of Investment
While HDFC Bank does not currently intend to directly invest in IndusInd, the “aggregate holding” of Bank group entities is likely to exceed the prescribed limit. The RBI’s definition of “aggregate holding” includes shareholding by the Bank, body corporates under the same management, mutual funds, trustees and promoter group entities. Therefore, the bank applied to RBI on behalf of its group entities on October 24, 2025.
Source: BSE
