Overview
- The approval, conveyed by an RBI letter dated December 15, 2025, permits an aggregate holding up to 9.50% and remains valid until December 14, 2026.
- HDFC Bank said it will not invest directly, with any purchases to be made by group entities such as HDFC Mutual Fund, HDFC Life, HDFC ERGO, HDFC Pension Fund and HDFC Securities.
- Under the 2025 Directions, “aggregate holding” combines stakes of the bank and related entities under common control, and HDFC applied on October 24 after group holdings were likely to cross the earlier 5% threshold.
- Conditions include staying within the 9.50% cap at all times, no representation on IndusInd’s board, compliance with banking, securities and foreign-exchange rules, and cancellation if a major shareholding is not acquired within a year.
- HDFC group entities held about 4.23% of IndusInd at end-September as mutual funds collectively owned roughly 23%, and the nod comes after IndusInd’s $230 million scandal, a record quarterly loss and plans to raise about $3.47 billion.