HDFC Bank has received approval to increase its aggregate holding in IndusInd Bank up to 9.50% of the paid-up share capital or voting rights. This approval, granted by the Reserve Bank of India (RBI) on December 15, 2025, is subject to certain conditions, including compliance with banking regulations. The approval is valid for one year, after which it will be cancelled if the shareholding isn’t acquired.
HDFC Bank’s Stake Acquisition
HDFC Bank has been given the green light to increase its stake in IndusInd Bank. The approval allows HDFC Bank to acquire ‘aggregate holding’ of up to 9.50% of IndusInd Bank’s paid-up share capital or voting rights. This decision, effective December 15, 2025, marks a potential shift in IndusInd Bank’s shareholder landscape.
Conditions and Limitations
The RBI’s approval comes with specific conditions. If HDFC Bank fails to acquire the major shareholding within one year from the date of the letter, the approval will be automatically cancelled. Moreover, HDFC Bank must ensure that its ‘aggregate holding’ in IndusInd Bank does not exceed 9.50% at any given time. Should the holding fall below 5%, prior approval from the RBI will be needed to increase it back to 5% or more. Additionally, HDFC Bank will not have representation on IndusInd Bank’s Board.
Source: BSE
