HDFC Group eyes up to 9.5% stake in IndusInd Bank:Receives RBI nod with a one-year window to invest, aimed at bolstering its competitiveness

Allowed HDFC Bank’s group companies can now collectively hold up to 9.5% stake in IndusInd Bank after receiving RBI approval on December 15, 2025. The approval is valid for one year, until December 14, 2026, according to exchange filings by both HDFC Bank and IndusInd Bank. Under RBI rules, bank-promoted entities such as mutual funds or insurance companies need prior permission to invest in another bank if their holding exceeds 5%. HDFC Bank had applied for this increase on October 24, 2025. HDFC Bank clarified that the approval applies only to group entities like HDFC Mutual Fund, HDFC Life, HDFC Ergo, HDFC Pension Fund, and HDFC Securities, and the bank itself will not purchase shares. Experts see HDFC-IndusInd stake approval as positive for banking sector Banking analysts said the RBI’s approval allowing HDFC Bank group to hold up to 9.5% in IndusInd Bank is a boost for the Indian banking sector. A senior analyst noted, “This will enhance domestic investment and strengthen Indian banking.” Key benefits highlighted: What could happen next: The approval is only for raising investment limits, not for a merger or acquisition. HDFC Bank, the country’s largest private bank, and IndusInd, a top private lender, can now invest without regulatory hurdles. If investments are not made within a year, the approval could be withdrawn, according to RBI rules. ​