IndusInd Bank gets RBI approval to set up wholly owned stock broking subsidiary
New Delhi, August 8
IndusInd Bank has received approval from the Reserve Bank of India to establish a wholly owned subsidiary to undertake stock broking business, the private sector lender said in an exchange filing late Friday.
The approval, dated August 7, 2026, also permits the bank to infuse equity capital into the proposed stock broking subsidiary. The RBI approval is subject to additional conditions specified in its letter to the bank.
The development marks a step towards expanding IndusInd Bank's presence in capital market-related financial services and enabling it to offer stock broking services through a dedicated subsidiary.
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 approval has been granted specifically for setting up a wholly owned subsidiary for carrying out stock broking activities.
The bank did not disclose the proposed amount of equity infusion or provide details on the timeline for incorporation and commencement of operations of the subsidiary.
The move comes as financial institutions increasingly seek to broaden their offerings beyond traditional banking services and strengthen their presence across the investment and capital markets ecosystem. A stock broking subsidiary could enable IndusInd Bank to build a more integrated offering for customers seeking access to equity and other market-linked investment products.
The proposed subsidiary would operate as a separate entity under the bank's ownership, subject to applicable regulatory requirements governing stock broking activities. The RBI has also attached additional conditions to its approval, which the bank will be required to comply with.
IndusInd Bank said the disclosure was being made for information and record purposes and that the intimation had also been uploaded on its website.
On Friday, shares of the bank ended 0.6 per cent higher at Rs 1,022 on the National Stock Exchange.
The RBI's approval is an important regulatory milestone for the bank as it moves towards establishing the new business. Further details, including the structure, capitalisation and operational launch of the subsidiary, are expected to emerge once the bank completes the necessary regulatory and corporate processes.
The development also comes against the backdrop of growing convergence between banking, wealth management and capital market services, as lenders look to deepen customer relationships and diversify fee-based revenue streams.
— ANI
Reader Comments
Another bank jumping into the broking space! It's becoming crowded. With Zerodha, Groww and others already offering zero brokerage, what's the point? They should focus on improving their core banking services and digital app instead of chasing every trend. Just my opinion though.
Waah! Finally IndusInd Bank is expanding beyond regular banking. The RBI approval is a big deal. Indian banks need to modernize and offer more services. The convergence of banking and capital markets is the future. Hoping they launch a good trading app with reasonable charges. 👌🏽
Ashneer Grover would approve this move! Banks need to become super-apps for finance. But I hope they don't over-charge customers just because they have a trusted banking brand. Yaar, Indian customers are price-sensitive after the discount broking revolution. Let's wait and watch.
This is exactly what the financial sector needs. Banks expanding into capital markets brings more credibility and trust, especially for older investors in India who are still hesitant to use pure-play discount brokers. Good strategic move by IndusInd Bank.
Honestly, I wish they had revealed the amount of equity infusion and timeline. The vagueness makes me skeptical. Banks talk about expansion but implementation takes forever. That said, RBI approval is a good sign. Let's hope they don't take another 5 years to launch.
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