Stocks in Focus: HDFC Bank is going to buy stake in this bank? Did you get approval from RBI? Know the details

By Samira Vishwas On Dec 16, 2025

Stocks in Focus: The country’s central bank RBI has approved the country’s largest lender HDFC Bank, including all group entities, to hold 9.5% stake in IndusInd Bank. HDFC Bank gave this information through an exchange filing late on Monday night, i.e. a day before trading.

After the approval of RBI on Tuesday, December 16, shares of both the banks are currently trading in the red zone. HDFC Bank shares are trading 0.17% lower at ₹994.20 on BSE, while IndusInd Bank shares are down 0.25% at ₹849.20.

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Stocks in Focus

What did HDFC Bank say about its stake in IndusInd Bank?

HDFC Bank said in an exchange filing that it has received RBI approval to hold a total of 9.5% stake in IndusInd Bank. This means that HDFC Bank is allowed to hold up to 9.5% of the paid-up share capital of IndusInd Bank as a sponsor or promoter of group entities like HDFC Mutual Fund, HDFC Life Insurance, HDFC ERGO General Insurance, HDFC Pension Fund and HDFC Securities.

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This approval is valid for one year, i.e. till 14 December 2026. The bank will have to ensure that its total stake in IndusInd Bank does not exceed 9.5%.

As per RBI rules, total stake means the combined stake of the bank, mutual fund, trustee and promoter group entities under the same management and control. Although HDFC Bank says it has no intention of directly buying stake in IndusInd Bank, the total stake of group entities could exceed 5%, hence RBI approval was necessary.

For this reason, the bank had sought permission from RBI on behalf of the group entities, which has now been granted. As per the shareholding pattern of September quarter, HDFC Midcap Fund of HDFC Mutual Fund holds 4.03% stake in IndusInd Bank.

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Performance of shares in the last one year

HDFC Bank shares were at ₹812.13 on January 13, 2025, which was a one-year low. After this, the shares rose 25.64% in nine months to reach ₹ 1020.35 on October 23, 2025, which was the highest level in a year.

At the same time, shares of IndusInd Bank have given a big shock to investors this year. Shares of IndusInd Bank had reached a one-year high of ₹ 1086.50 on 7 February 2025. After this, within a month, the shares fell by 44.28% to ₹ 605.40 on March 12, 2025, which was the lowest level in one year.