HDFC Bank Share Price in Focus as RBI Approves Up to 9.95% Stake Acquisition in ICICI Bank and Kotak Mahindra Bank

HDFC Bank has received approval from the Reserve Bank of India (RBI) to invest in ICICI Bank Limited and Kotak Mahindra Bank Limited.  

This approval allows HDFC Bank to acquire an "aggregate holding" of up to 9.95% of the paid-up share capital or voting rights in these banks. 

Details of RBI Approval 

The RBI, through its letters dated May 6, 2026, granted HDFC Bank the permission to invest in ICICI Bank and Kotak Mahindra Bank. This approval is valid for 1 year, expiring on May 5, 2027.  

HDFC Bank must ensure that its "aggregate holding" in these banks does not exceed 9.95% at any time. 

According to the RBI Directions of 2025, 'aggregate holding' includes shareholding by the bank, entities under the same management, mutual funds, trustees, and promoter group entities. 

Background of the Investment 

HDFC Bank does not intend to directly invest in ICICI and Kotak. However, the "aggregate holding" of HDFC Bank group entities is likely to exceed the 5% limit, prompting the bank to seek RBI approval for increased investment limits. 

On January 23, 2026, HDFC Bank submitted applications to the RBI on behalf of its group entities to comply with the RBI Directions. 

Normal Course of Business 

The investments by HDFC Bank group entities in ICICI and Kotak are part of their normal business activities.  

The bank's group entities include HDFC Mutual Fund, HDFC Life Insurance Company Limited, HDFC ERGO General Insurance Company Limited, HDFC Pension Fund Management Limited, and HDFC Securities Limited. 

Read More: Scheduled Commercial Banks Reports 15.9% Credit Growth in FY26 as Lending Rises Across Sectors! 

HDFC Bank Share Price Performance 

As of May 06, 2026, at 3:30 PM, HDFC Bank share price on NSE was closed at ₹796.55 up by 3.14% from the previous closing price. 

Conclusion 

HDFC Bank's receipt of RBI approval to invest in ICICI and Kotak underscores its strategic alignment with regulatory requirements. The bank must maintain its "aggregate holding" within the approved limits, ensuring compliance with the RBI Directions. 

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