The approval is on behalf of the HDFC Bank group, including its asset management company, according to a source from HDFC Bank.

The RBI has mandated that HDFC Bank acquire major shareholding within one year from the date of the approval, without which it would stand cancelled.

IndusInd's promoters had received the central bank's approval in November to raise their stake to 26% in the bank.

Both IndusInd and HDFC Bank, which reported quarterly results in January, beat profit expectations on the back of strong loan growth.

(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Janane Venkatraman)