HDFC Bank Boosts Stake in IndusInd: Strategic Move in Indian Banking Sector

HDFC Bank received approval from the Reserve Bank of India to increase its holding in IndusInd Bank up to 9.5%. The approval, subject to regulatory compliance, requires the stake acquisition within a year. HDFC Bank must also adhere to shareholding limits and avoid board representation.

HDFC Bank has received the Reserve Bank of India's approval to increase its stake in IndusInd Bank to up to 9.5%. This strategic move marks a significant development in India's private banking sector.

According to a regulatory filing by IndusInd Bank, this approval is contingent upon compliance with several regulations, including the Banking Regulation Act and guidelines issued by various Indian financial authorities. HDFC Bank is granted one year to finalize its stake acquisition, failing which the approval will lapse.

The RBI's conditions further specify that HDFC Bank must not exceed the approved stake percentage and is restricted from having board representation in IndusInd Bank. Any future changes in shareholding below 5% will require additional RBI approval.

(With inputs from agencies.)