A big and shocking development has come to light in India’s banking sector. HDFC Bank, the country’s largest private bank, is going to buy 9.5% stake in its competitor IndusInd Bank. This deal has received the approval of RBI, which has further increased its importance.
After this HDFC Bank will become an influential shareholder of IndusInd Bank. This investment comes at a time when IndusInd Bank is facing financial and governance challenges due to derivatives exposure and accounting lapses.
RBI has laid down the condition that the acquisition will have to be completed within a year. Other units of HDFC Group may also join. Meanwhile, HDFC Bank has become India’s Most Valued Brand 2025 with a brand value of $44.9 billion.
