HDFC Bank has received approval from the Reserve Bank of India (RBI) to acquire an aggregate holding of up to 9.95% of the paid-up share capital or voting rights in ICICI Bank and Kotak Mahindra Bank. The approval, communicated through letters dated 6 May 2026, is valid for one year, until 5 May 2027.
The RBI’s approval allows HDFC Bank, as the promoter and sponsor of its group entities, to make these investments. The group entities include HDFC Mutual Fund, HDFC Life Insurance Company Limited, HDFC ERGO General Insurance Company Limited, HDFC Pension Fund Management Limited, and HDFC Securities Limited. The bank must ensure that the aggregate holding does not exceed the 9.95% threshold at any time.
According to the Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025, ‘aggregate holding’ encompasses shareholding by the bank, body corporate under the same management or control, mutual funds, trustees, and promoter group entities. Although HDFC Bank does not plan to directly invest in ICICI and Kotak, the aggregate holding of its group entities is likely to surpass the prescribed limit of 5%. Consequently, HDFC Bank submitted an application to the RBI on 23 January 2026, seeking approval to increase investment limits.
The investments by HDFC Bank group entities are part of the normal business operations of these entities.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).