Current Affairs - Banking - Discussion

The Reserve Bank of India granted approval to HDFC Bank and its group entities to acquire up to a 9.5% aggregate stake in IndusInd Bank. This approval allows HDFC Bank to make a strategic investment while staying within the regulatory framework governing bank ownership and voting rights. The permission is time-bound and valid until December 2026, ensuring regulatory oversight during the investment period. By allowing HDFC Bank to increase its exposure under a defined limit, the RBI balances growth opportunities for the bank with safeguards related to control, governance, and financial stability in the Indian banking system.