Shares of HDFC Bank and IndusInd Bank traded slightly lower on Tuesday morning, December 16, after HDFC Bank disclosed that the Reserve Bank of India (RBI) has permitted HDFC group entities to hold up to 9.5% in IndusInd Bank.
Around 9:30 am, HDFC Bank was down about 0.1% near ₹995, while IndusInd Bank slipped roughly 0.5% to around ₹847.
What the RBI approval covers
In a stock exchange filing issued late Monday, HDFC Bank said the approval applies to the combined (aggregate) holding of its group companies, including:
- HDFC Mutual Fund
- HDFC Life Insurance
- HDFC ERGO General Insurance
- HDFC Pension Fund
- HDFC Securities
HDFC Bank clarified it does not plan to invest directly in IndusInd Bank. The application was made because the total exposure of these group entities was expected to go beyond the earlier regulatory threshold of 5%, requiring RBI clearance under the Commercial Banks (Acquisition and Holding of Shares or Voting Rights) Directions, 2025.
Timeline and conditions
- Application submitted: October 24, 2025
- Approval granted: December 15, 2025
- Validity: One year, up to December 14, 2026
- Condition: The stake must be acquired within this period, or the approval lapses
- Cap: Aggregate holding must not exceed 9.5% of IndusInd Bank’s paid-up share capital or voting rights at any time
Existing holdings and key shareholders
As per the September-quarter shareholding data, HDFC Midcap Fund held about 4.03% in IndusInd Bank, valued at roughly ₹2,668 crore based on the prior close. Mutual funds collectively own close to 23% of IndusInd Bank, with other major investors including the Government of Singapore, Government Pension Fund Global, BNP Paribas, and LIC.
Why IndusInd has been in focus
IndusInd Bank has faced pressure in recent months following governance and accounting concerns, including a significant hit linked to derivatives that contributed to its largest-ever quarterly loss in the March quarter. The fallout reportedly included senior leadership exits and renewed scrutiny of board oversight and disclosure timelines. The bank has also outlined plans to strengthen capital and rebuild investor confidence.
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