Athira Sethu
Kochi, 16 Dec 2025
The Reserve Bank of India (RBI) has cleared HDFC Bank’s proposal to buy a stake of up to 9.5% of IndusInd Bank shares.
IndusInd Bank in an exchange filing stated that HDFC Bank and its group of companies-HDFC Mutual Fund, HDFC Life Insurance Company, and HDFC Pension Fund-have the approval to buy a maximum of 9.5% of the shares of IndusInd Bank.
However, the RBI has mandated that HDFC Bank acquire a majority shareholding within one year of the approval, failing which it will be cancelled.
This is occurring during a tough time for IndusInd Bank, given the criticism it has received from its investors regarding its inability to effectively monitor its financial dealings and for the delay in reporting accounting problems. These problems were linked to the bank’s derivative unit, which caused a loss of $230 million.
In the earlier part of this year, IndusInd announced a new fundraising campaign where it aims to mobilize a maximum of $3.47 billion. Simultaneously, the bank announced that the promoters will have the discretion to nominate two new members to have better control over a bank facing financial troubles.
