HDFC Bank Secures RBI Nod for Investment in IndusInd Bank

HDFC Bank has received approval from the Reserve Bank of India (RBI) to invest in IndusInd Bank.  

This approval allows HDFC Bank to acquire an aggregate holding of up to 9.50% of the paid-up share capital or voting rights in IndusInd Bank, valid until December 14, 2026. 

Details of RBI Approval 

On December 15, 2025, HDFC Bank announced that it had secured approval from the RBI to invest in IndusInd Bank. The approval permits HDFC Bank, as the promoter or sponsor of its group entities, to acquire an aggregate holding of up to 9.50% in IndusInd Bank. This approval is valid for 1 year, expiring on December 14, 2026. 

HDFC Bank being promoter or sponsor of its group entities viz HDFC Mutual Fund, HDFC Life Insurance Company Limited, HDFC ERGO General Insurance Company Limited, HDFC Pension Fund Management Limited and HDFC Securities Limited 

The RBI's directions stipulate that the aggregate holding includes shareholding by the bank, bodies corporate under the same management or control, mutual funds, trustees, and promoter group entities. 

Application for Increased Investment Limits 

HDFC Bank, anticipating that its group entities' aggregate holding might exceed the prescribed limit of 5%, applied to the RBI for an increase in investment limits. This application was submitted on October 24, 2025, on behalf of the group entities. 

Read More: Nifty Financial Services Index at 27,563: HDFC Bank (31.8%), ICICI Bank Drive Sector Moves! 

Investment in the Normal Course of Business 

HDFC Bank clarified that the investments by its group entities in IndusInd Bank are part of their normal business operations. The bank does not intend to invest directly in IndusInd Bank but has sought the RBI's approval to ensure compliance with the RBI Directions. 

HDFC Bank Share Price Performance 

As of December 16, 2025, at 9:17 AM, HDFC Bank share price on NSE was trading at ₹993.60 down by 0.25% from the previous closing price. 

Conclusion 

HDFC Bank's receipt of RBI approval to acquire up to 9.50% of IndusInd Bank's share capital or voting rights marks a significant development. This approval, valid until December 14, 2026, ensures that HDFC Bank and its group entities can align their investment strategies with regulatory requirements. 

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