HDFC Bank has received in-principle approval from the Reserve Bank of India (RBI) allowing its group entities to collectively acquire up to 9.5 per cent stake in IndusInd Bank. The regulatory approval is valid for a period of one year, extending until December 2026.
According to regulatory disclosures, the approval permits HDFC Bank’s group companies, including its mutual fund, insurance, pension and securities arms, to raise their combined shareholding in IndusInd Bank, provided the aggregate holding does not exceed the approved threshold at any point during the validity period.
HDFC Bank clarified that it does not plan to make a direct investment in IndusInd Bank. Instead, the permission enables its group entities to invest independently while remaining within regulatory limits. The approval increases the earlier ceiling of 5 per cent applicable to such aggregate holdings.
The move marks an important regulatory development for HDFC Bank as its group companies continue to expand their presence across India’s financial services ecosystem. Market participants are expected to track developments closely, given the potential implications for both banks.
IndusInd Bank continues to operate independently, while the approval does not involve any change in management control or strategic ownership structure.
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