Mumbai: HDFC Bank has received the Reserve Bank of India’s approval to acquire a 9.5% stake in IndusInd Bank, a move that has put the spotlight on the private lender following its biggest quarterly loss in Q4 FY2024-25. Following this approval, HDFC Bank and its entities including HDFC Pension Fund, HDFC Life Insurance and HDFC Mutual Fund, are expected to collectively acquire about 9.5% in the mid-sized lender.
The lender publicly disclosed financial discrepancies in its books in an exchange filing on March 10, 2025 that did not meet existing accounting guidelines, resulting in an impact of around ₹1,577 crore to its net worth. Following that, the company’s top management, including then CEO Sumant Kathpalia, deputy CEO Arun Khurana, resigned, leading to the appointment of Rajiv Anand, ex-deputy MD at Axis Bank, to the helm.
While HDFC Bank hasn’t indicated its intent to participate in the company’s management or operations, its presence as a significant shareholder is expected to comfort the market, even as the RBI has said that HDFC and its affiliates can hold not more than 9.50% of the shareholding in the bank.
Following the pressure and criticism for its losses, the bank is now looking to raise up to $3.47 billion and allow the promoters (including HDFC Bank and its affiliates) to nominate two directors to its board to restore confidence.
With HDFC Bank’s reputation for conservative risk management and consistent profitability, analysts are hoping for a turnaround for the sixth-largest private bank in India.
