RBI allows HDFC Bank units to acquire 9.5% stake in IndusInd Bank

The Reserve Bank of India (RBI) has approved HDFC Bank Ltd. (being the promoter/sponsor of its group entities HDFC Mutual Fund, HDFC Life Insurance Company Ltd., HDFC ERGO General Insurance Company Ltd., HDFC Pension Fund Management Ltd. and HDFC Securities Ltd.) to acquire “aggregate holding” of up to 9.50% of the paid-up share capital or voting rights in IndusInd Bank.

This approval is valid for a period of one year from the date of RBI letter i.e. till December 14, 2026.

IndusInd Bank said that HDFC Bank will have to ensure that the “total shareholding” in IndusInd will not at all times exceed 9.50% of the paid-up share capital or voting rights of IndusInd Bank.

“If the “total holding” falls below 5%, it will require prior approval of RBI to increase it to 5% or more of the total paid-up share capital or voting rights of IndusInd Bank. RBI also stated that the applicant will not have representation on the board of IndusInd Bank.”