- HDFC Bank got RBI approval to hold up to 9.95% stake in ICICI and Kotak banks
- Approval valid for one year and allows group entities to cross 5% shareholding limit
- HDFC Bank itself will not make direct investments in ICICI Bank or Kotak Mahindra Bank
HDFC Bank shares are likely to remain in focus after the Reserve Bank of India approved the lender's proposal to hold an aggregate stake of up to 9.95% in ICICI Bank and Kotak Mahindra Bank through its group entities.
The approval, valid for one year, allows holdings by entities linked to HDFC Bank to cross the 5% threshold set under the Reserve Bank of India (Commercial Banks - Acquisition and Holding of Shares or Voting Rights) Directions, 2025. The cap on aggregate exposure remains at 9.95% of paid-up share capital or voting rights in both banks.
The move mainly addresses regulatory requirements linked to investments held by HDFC group entities and does not involve a direct investment plan by HDFC Bank itself.
Under the approval, holdings by HDFC Mutual Fund, HDFC Life Insurance Company Ltd., HDFC ERGO General Insurance Company Ltd., HDFC Pension Fund Management Ltd. and HDFC Securities Ltd. will be counted as part of the aggregate exposure.
Regulatory Framework
HDFC Bank said the application became necessary under the RBI's updated shareholding rules, which treat investments by entities under common management or control as part of a combined holding.
"Aggregate holding" under the RBI directions includes holdings by the bank, promoter group entities, mutual funds, trustees and other related bodies corporate, the bank said.
HDFC Bank submitted the application to the RBI on Jan. 23, 2026, on behalf of its group entities after aggregate holdings were expected to exceed the 5% limit prescribed under the new framework.
The bank clarified that it does not intend to make investments directly in ICICI Bank or Kotak Mahindra Bank.
Group Entities Covered
The RBI approval applies to HDFC Bank in its role as promoter and sponsor of several financial services entities within the group.
The entities covered under the approval are HDFC Mutual Fund, HDFC Life Insurance Company Ltd., HDFC ERGO General Insurance Company Ltd., HDFC Pension Fund Management Ltd. and HDFC Securities Ltd.
The approval formalises the regulatory position for existing and potential investments by these entities in the two private sector lenders while keeping the aggregate holding below 9.95%.
Catch all the live updates on stock markets here.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
