IndusInd Bank has received approval from the Reserve Bank of India (RBI) to establish a wholly owned subsidiary for its proposed stock broking business. The private sector lender disclosed the development in a regulatory filing late Friday.
The RBI approval, also allows the bank to infuse equity capital into the proposed subsidiary. The approval remains subject to applicable regulatory requirements and conditions specified by the central bank.
The move marks an important step in IndusInd Bank’s expansion into capital market services. The bank plans to offer stock broking services through a separate subsidiary, allowing it to expand beyond traditional banking and build a broader financial services platform for its customers.
According to the bank’s disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the RBI has specifically approved the setting up of a wholly owned subsidiary for carrying out stock broking activities.
IndusInd Bank has not yet disclosed the amount of equity capital it plans to invest in the new business. The bank has also not provided a specific timeline for incorporating the subsidiary or starting its stock broking operations.
The planned entry into stock broking comes as banks and financial institutions increasingly expand their presence across wealth management, investment products and capital markets. By adding stock broking services, IndusInd Bank could offer customers a wider range of financial products through its broader banking ecosystem.
The new subsidiary will operate as a separate entity under the ownership of IndusInd Bank. It will be required to comply with the regulatory framework applicable to stock broking businesses. The RBI has also attached certain conditions to its approval, which the bank will need to meet before commencing operations.
The move could help IndusInd Bank strengthen its relationship with retail and affluent customers seeking access to equity markets and other investment products. It may also create opportunities for the bank to diversify its fee based revenue streams as competition in financial services continues to increase.
IndusInd Bank said the regulatory disclosure was made for information and record purposes. The bank also stated that the communication had been uploaded on its website.
On Friday, IndusInd Bank shares closed 0.6 per cent higher at ₹1,022 on the National Stock Exchange.
The RBI approval is an important regulatory milestone for IndusInd Bank as it prepares to enter the stock broking segment. Further details on the subsidiary’s capital structure, incorporation and operational launch are expected after the bank completes the required regulatory and corporate processes.
The development also reflects the growing convergence between banking, wealth management and capital market services in India’s financial sector. Banks are increasingly looking to offer more integrated financial solutions as customers seek easier access to banking, investment and wealth management products through a single ecosystem.
