HDFC Bank has obtained permission from the Reserve Bank of India (RBI) for its group entities to possess a stake of up to 9.50 percent in IndusInd Bank.

The approval was given in a letter dated December 15 and will be valid for one year, expiring on December 14, 2026. The RBI has indicated that the overall holding should not exceed 9.50 percent of the paid-up share capital or voting rights of IndusInd Bank at any moment.

The endorsement encompasses the combined or "total holding" of HDFC Bank and its affiliated entities, with HDFC Bank acting as the promoter or sponsor. These organizations consist of HDFC Mutual Fund, HDFC Life Insurance Company Limited, HDFC ERGO General Insurance Company Limited, HDFC Pension Fund Management Limited, and HDFC Securities Limited.

According to the Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025, the phrase “aggregate holding” encompasses share ownership by the bank itself, corporate bodies under similar management or control, mutual funds, trustees, and entities belonging to the promoter group.

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HDFC Bank stated that it has no plans to make a direct investment in IndusInd Bank. Nevertheless, because the total investments from its group entities were projected to exceed the previous threshold of 5 percent, the bank sought approval from the RBI to raise the allowable investment limit.

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The application was filed on October 24, 2025, for the group entities, since the RBI Directions are relevant to the bank.

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HDFC Bank stands as India's biggest private sector bank, recognized for its vast network, cutting-edge digital banking, and wide-ranging financial services for both individuals and enterprises, rooted in its parent, the Housing Development Finance Corporation (HDFC Ltd.), which underwent a notable merger in 2023 that united the housing finance leader with the bank to form a financial powerhouse prioritizing growth and customer solutions