HDFC Bank To Buy 9.50% Stake In IndusInd Bank: How The Two Shares Are Performing & Who To Buy?

HDFC Bank and IndusInd Bank are entering into a mega deal where the former will buy at least a 9.50% stake in the latter. However, both HDFC and IndusInd Banks' share prices have shown a mixed reaction. HDFC Bank traded volatile, while IndusInd dropped to nearly 1%. Which leading private bank stocks to buy?

HDFC Bank - IndusInd Bank Stake Deal

As per the regulatory filing, HDFC Bank has received RBI's approval to buy aggregate holdings up to 9.50% of the paid-up share capital or voting rights in IndusInd Bank.

Notably, RBI's approval is valid for a period of one year from the date of
RBI's letter, i.e., till December 14, 2026. Further the Bank needs to ensure that the "aggregate holding" in IndusInd does not exceed 9.50% of the paid-up share capital or voting rights of IndusInd, at all times.

HDFC Bank said, "In view of the same, whilst the Bank does not intend to invest in IndusInd,
since the "aggregate holding" of Bank group entities is likely to exceed the prescribed limit of 5%, an application seeking approval of RBI for increase in investment limits was made. Further, since the RBI Directions are applicable to the Bank, the Bank had made the application to RBI on behalf of the group entities, on October 24, 2025."

Currently, HDFC Bank is the promoter and sponsor of its group entities namely HDFC Mutual Fund, HDFC Life Insurance Company Limited, HDFC ERGO General Insurance Company Limited, HDFC Pension Fund Management Limited and HDFC Securities Limited.

HDFC Bank vs IndusInd Bank share price

At the time of writing, HDFC Bank traded at Rs 994.60 apiece, down marginally on BSE, with market cap of Rs 15,29,944.50 crore. The stock has hovered between its intraday high and low of Rs 997.25 apiece and Rs 992.00 apiece respectively.

But notably, HDFC Bank shares are still near its 52-week high of Rs 1,020.35 apiece.

Meanwhile, IndusInd Bank shares traded at Rs 846.45 apiece, down by 0.6% with a market cap of Rs 65,944.89 crore. The stock is near its intraday low of Rs 844.30 apiece.

IndusInd Bank vs HDFC Bank: Which Stock To Buy?

IndusInd Bank Share Price Recommendation:

The consensus recommendation from 36 analysts for IndusInd Bank is SELL, as per Trendlyne data. The average target price is set at Rs 758.92 apiece, signalling a nearly 10.5% potential drop ahead.

HDFC Bank Share Price Recommendation:

On the other hand, the consensus recommendation from 39 analysts for HDFC Bank is STRONG BUY. The average target price is Rs 1,165.82, signalling a more than 17% potential upside ahead.

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