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

The Reserve Bank of India (RBI) has accorded itsapproval to HDFC Bank Ltd Bank (being 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.

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

IndusInd Bank said that HDFC Bank must ensure that the “aggregate holding” in the IndusInd would not exceed 9.50% of the paid-up share capital or votingrights of IndusInd Bank, at all times.

“If the “aggregate holding” falls below 5%, prior approval ofthe RBI will be required to increase it to 5% or more of the total paid-up share capital orvoting rights of the IndusInd Babk. The RBI also conveyed that the applicant shall not haverepresentation on the IndusInd Bank’s Board,” it added.