HDFC Bank gets RBI approval to raise stake in IndusInd Bank to 9.5 per cent

HDFC Bank has received RBI approval to raise its stake in IndusInd Bank up to 9.5 per cent. The clearance is subject to compliance with banking, securities and foreign exchange regulations, and bars board representation

New Delhi: HDFC Bank has got the Reserve Bank’s nod to hike its stake in another private sector lender, IndusInd Bank, up to 9.5 per cent.

“We would like to inform you that the Reserve Bank of India (RBI) vide its letter dated December 15, 2025, has accorded its approval to HDFC Bank (applicant) to acquire ‘aggregate holding’ of up to 9.50 per cent of the paid-up share capital or voting rights in IndusInd Bank,” IndusInd Bank said in a regulatory filing.

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The RBI approval has been granted with reference to the application made by HDFC Bank, it said. “The approval granted by RBI is subject to compliance with the relevant provisions of the Banking Regulation Act, 1949, Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025 dated November 28, 2025 (as amended from time to time), provisions of the Foreign Exchange Management Act, 1999, regulations issued by Securities and Exchange Board of India, and any other statutes, regulations and guidelines, as applicable,” it said.

RBI, while approving, has also conveyed that if the applicant fails to acquire major shareholding within a period of one year from the date of the aforesaid RBI letter, the approval shall stand cancelled, it said.

Further, it said, the applicant should ensure that the ‘aggregate holding’ in the bank does not exceed 9.50 per cent of the paid-up share capital or voting rights of the bank, at all times.

If the “aggregate holding” falls below 5 per cent, prior approval of the RBI will be required to increase it to 5 per cent or more of the total paid-up share capital or voting rights of the bank. The RBI also conveyed that the applicant should not have representation on the bank’s board, it said.