RBI Clears HDFC Bank Group To Hold Up To 9.95% Stake In ICICI Bank And Kotak Mahindra Bank

The Reserve Bank of India gave HDFC Bank the green light on Wednesday to let its group entities collectively own up to 9.95% of paid-up share capital or voting rights in ICICI Bank and Kotak Mahindra Bank. The approval runs from 6 May 2026 to 5 May 2027.

HDFC Bank went to the Reserve Bank of India with the application back in January after it became clear that combined holdings across its subsidiaries were heading toward the 5% ceiling introduced under the central bank's 2025 shareholding directions.

Those rules count investments by entities under common control as a single pooled number rather than separate positions, which is what pushed the group over the threshold.

On Thursday morning, HDFC Bank shares were trading marginally lower at ₹797.70, down 0.16%, as of 9:17 AM. The stock closed 3% higher at ₹796 yesterday. The 52-week high currently sits at ₹1,020.50.

Who Is Covered

The approval sits with HDFC Bank in its role as promoter and sponsor. Five subsidiaries fall under the clearance:

• HDFC Mutual Fund.

• HDFC Life Insurance Company Limited.

• HDFC ERGO General Insurance Company Limited.

• HDFC Pension Fund Management Limited.

• HDFC Securities Limited.

HDFC Bank has been clear that it is not buying into either bank directly and this is about the investment activity of its subsidiaries, not a strategic stake-building move by the parent.

The Rules

The 9.95% ceiling applies to both ICICI Bank and Kotak Mahindra Bank, at all times, for the duration of the approval. The group cannot let the combined number drift above that level at any point before May 5, 2027.

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No Major Shift In Ownership Structure

Nothing changes for ICICI Bank or Kotak Mahindra Bank in terms of ownership dynamics. For the HDFC group's fund managers and insurance investment teams, the approval simply creates a defined operating space within which they can hold and adjust positions without needing fresh regulatory clearance each time. It is a compliance exercise driven by a rule change, not a strategic decision.

Source:

NDTV