RBI approves HDFC subsidiaries to buy 9.5% stake in IndusInd Bank

HDFC Bank has received support from India’s cardinal bank, the Reserve Bank of India (RBI), for its subsidiaries to get up to a 9.5% involvement successful IndusInd Bank.

The support has been fixed to HDFC units, HDFC Mutual Fund, HDFC Life Insurance, HDFC ERGO General Insurance, HDFC Pension Fund Management, and HDFC Securities.

These units are allowed to jointly acquisition up to 9.5% of IndusInd Bank’s paid-up stock superior oregon voting rights, wrong 1 year, until 14 December 2026.

According to a study from Kotak Securities, the regulations antecedently constricted slope shareholding successful different slope to 5% without explicit clearance.

HDFC Bank radical held astir 4.23% involvement successful IndusInd Bank astatine the extremity of September, and RBI’s support marks an summation from this earlier threshold.

IndusInd Bank precocious reported its largest-ever quarterly nonaccomplishment for the fiscal twelvemonth ending March 2025.

This nonaccomplishment resulted from a $230m accounting and governance issue, which led to the departures of erstwhile CEO Sumant Kathpalia and Deputy CEO Arun Khurana.

The bank’s committee of directors were criticised for its oversight and the hold successful disclosing risks related to its derivative portfolio.

In response, IndusInd Bank initiated measures aimed astatine strengthening its governance model and improving its superior position.

The slope plans to rise $3.47bn and let promoters to nominate 2 directors to its board, to stabilise its operations and reconstruct capitalist confidence, the study said.

Earlier this year, HDFC Bank Group secured support from the RBI to summation its aggregate holding successful 3 banking entities.

This clearance allowed the radical to get stakes of up to 9.5% successful Kotak Mahindra Bank, AU Small Finance Bank, and Capital Small Finance Bank.

HDFC Bank is required to guarantee that its radical entities’ combined holdings bash not surpass the 9.5% threshold successful the paid-up stock superior oregon voting rights of these banks.

"RBI approves HDFC subsidiaries to bargain 9.5% involvement successful IndusInd Bank " was primitively created and published by Retail Banker International, a GlobalData owned brand.

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