RBI Approves HDFC Bank to Acquire Up to 9.50% Stake in IndusInd Bank

At 10:30 AM, the BSE Sensex was down 385 points or 0.4% at 84,837.  The BSE benchmark hit an intra-day low of 84,717. Meanwhile, the Nifty 50 quoted with a loss of 110 points or 0.4% at 25,920.

Meanwhile of HDFC Bank and IndusInd Bank share price edged slightly lower in early Tuesday trade on December 16, following the Reserve Bank of India’s approval allowing HDFC Bank’s group entities to collectively acquire up to a 9.5% stake in IndusInd Bank.

RBI Approves HDFC Bank to Acquire Up to 9.5% Stake in IndusInd Bank

IndusInd Bank Limited today informed stock exchanges that the Reserve Bank of India (RBI) has granted approval to HDFC Bank Limited to acquire an "aggregate holding" of up to 9.50% of the paid-up share capital or voting rights in IndusInd Bank. 

The approval from the RBI was accorded via a letter dated December 15, 2025, following an application made by HDFC Bank, referred to as the "applicant".

The regulatory approval comes with several specific conditions that HDFC Bank must meet:

1. Maximum Holding: HDFC Bank must ensure that the "aggregate holding" in IndusInd Bank does not exceed 9.50% of the paid-up share capital or voting rights at any time.
2. Timeline for Acquisition: The approval shall stand canceled if HDFC Bank fails to acquire the major shareholding within a period of one year from the date of the RBI letter.
3. Board Representation: The RBI explicitly conveyed that the applicant shall not have representation on IndusInd Bank’s Board.
4. Compliance: The approval mandates compliance with various statutes, regulations, and guidelines, including the Banking Regulation Act, 1949, the RBI Directions (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) dated November 28, 2025, the Foreign Exchange Management Act, 1999, and regulations issued by SEBI.
5. Minimum Holding Requirement: If the "aggregate holding" falls below 5%, HDFC Bank will require prior approval of the RBI to increase its holding back to 5% or more of the total paid-up share capital or voting rights of IndusInd Bank.

IndusInd Bank Current Shareholding Pattern

As of September 2025, the company’s shareholding pattern shows FIIs holding the largest stake at 34.32%, followed by DIIs with 31.57%. Promoters together own 15.82%, comprising IndusInd International Holdings Ltd (12.05%) and IndusInd Ltd (3.77%). The public holds 17.91%, while the government has a marginal stake of 0.38%.

Indusind Bank Share Price Performance

On Tuesday, IndusInd Bank share price was trading in negative territory. As of 10:56 am the stock price was trading at ₹845.65 per share, down by 0.66%. In the last 12 months, the stock price has been 14% down, but in the last three months, the stock has recovered by 13%.

IndusInd Bank has faced sustained pressure after governance and accounting lapses came to light earlier this year, culminating in its biggest-ever quarterly loss in the March quarter. The bank took a $230 million hit linked to accounting issues, triggering the departures of then CEO Sumant Kathpalia and deputy CEO Arun Khurana. The developments also sparked sharp criticism from investors, who questioned the board’s oversight and the delayed communication around losses in the bank’s derivatives portfolio.

In response, the bank had announced plans earlier this year to raise up to $3.47 billion to strengthen its capital base. As part of this initiative, it also proposed allowing promoters to appoint two nominees to the board, aiming to rebuild market confidence and stabilise operations.

HDFC Bank Share Price Performance

On Tuesday, HDFC Bank share price was trading in negative territory. As of 11:11 am the stock price was trading at ₹993.90 per share, down by 0.22%. On a year-to-date basis, the stock price has given 12.04%.