RBI Approves HDFC Bank Group’s Stake Increase in IndusInd Bank to 9.5%, Market Eyes Stocks

RBI Clears HDFC Bank Group to Raise Stake in IndusInd Bank to 9.5%

The Reserve Bank of India (RBI) has approved HDFC Bank and its group entities to hold an aggregate stake of up to 9.5% in IndusInd Bank, keeping the shares of both lenders in focus in Tuesday’s (December 16) trading session.

HDFC Bank, in a filing, said the RBI’s approval covers the bank and its group companies, including HDFC Mutual Fund, HDFC Life, HDFC ERGO, HDFC Pension Fund, and HDFC Securities. The approval is valid for one year, until December 14, 2026, with a strict 9.5% ceiling.

“Aggregate holding” includes shareholding by the bank, its controlled entities, mutual funds, trustees, and promoter group entities. While HDFC Bank does not plan to directly invest, its group holdings were set to exceed the 5% limit, prompting the RBI application submitted on October 24, 2025.

As of the September quarter, HDFC Midcap Fund held a 4.03% stake in IndusInd Bank, valued at around ₹2,668 crore. Overall, mutual funds hold nearly 23% of IndusInd Bank, alongside major investors such as the Government of Singapore, Government Pension Fund Global, BNP Paribas, and LIC.