New Delhi: HDFC Bank, India’s largest private sector lender, has received approval from the Reserve Bank of India (RBI) to acquire up to a 9.5 per cent stake in three banks: Kotak Mahindra Bank, AU Small Finance Bank, and Capital Small Finance Bank. The RBI’s approval is valid until January 2, 2026, according to a regulatory filing by HDFC Bank late Friday night.
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The bank stated that the central bank has allowed it to hold a combined stake of up to 9.5 per cent in the share capital or voting rights of these three banks. However, the approval comes with a condition: HDFC Bank must ensure that its group entities, including HDFC Mutual Fund, HDFC Life Insurance, HDFC ERGO General Insurance, and HDFC Pension Fund Management, collectively do not exceed this limit.
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HDFC Bank clarified that it does not have immediate plans to invest in these banks. “Since the combined holdings of our group entities may already exceed the 5 per cent investment cap, we sought RBI’s approval to enhance the permissible investment limits,” the lender said in its filing.
