The Reserve Bank of India (RBI) has approved HDFC AMC to acquire up to 9.5% of Karur Vysya Bank’s share capital or voting rights, subject to conditions.
“Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, we advised that the Reserve Bank of India vide its letter dated September 20, 2023, has accorded its approval to HDFC Asset Management Company Ltd. (HDFC AMC) for acquiring aggregate holding of up to 9.5% of the paid-up share capital or voting rights of The Karur Vysya Bank Ltd,” Karur Vysya Bank said in a regulatory filing.
The approval has been granted with reference to the application made by HDFC AMC to RBI.
The aforesaid approval granted by RBI is subject to compliance with the relevant provisions of the Banking Regulation Act, 1949, RBI’s Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated January 16, 2023 (as amended from time to time), provisions of the Foreign Exchange Management Act, 1999, regulations issued by Securities and Exchange Board of India, and any other guidelines, regulations, and statutes as applicable, it added.
HDFC AMC must ensure that the aggregate holding in the Bank does not exceed 9.5% of the paid-up share capital or voting rights of the Bank at all times. Further if the aggregate holding falls below 5%, prior approval of RBI will be required to increase it to 5% or more of the paid-up share capital or voting rights of the Bank, the bank said in the regulatory filing.
HDFC AMC gets RBI nod to acquire up to 9.5% stake in DCB Bank
In a separate filing, DCB Bank informed the exchanges that RBI has accorded its approval to HDFC AMC to acquire up to 9.5% of the paid-up share capital or voting rights of the Bank.
“We would like to inform you that the Bank has received an intimation from RBI on September 20, 2023, that it has accorded its approval to HDFC Asset Management Company Limited (“AMC”) to acquire aggregate holding of up to 9.5% of the paid-up share capital or voting rights of the Bank,” DCB Bank informed the exchanges.
The central bank has advised HDFC AMC to acquire a stake in the Bank within 1 year from the approval date.
AMC has been advised by the RBI to acquire the aforesaid major shareholding in the Bank within a period of one year from the date of approval. If AMC fails to acquire major shareholding within the stipulated period, the approval granted by the RBI shall stand cancelled. Further, AMC must ensure that the aggregate holding in the Bank does not exceed 9.5% of the paid-up share capital or voting rights of the Bank at all times, it added.
HDFC AMC, Karur Vysya Bank, DCB Bank shares are in focus today
Around 10.10 am, Karur Vysya Bank shares soared 1.05%. The current market price of Karur Vysya Bank shares is ₹135.15 apiece on BSE. On the other hand, DCB Bank soared 2.62% on BSE. The current market price of DCB Bank Limited is ₹129.15 apiece on BSE. HDFC AMC shares soared more than 1.21% on the BSE. The current market price of HDFC Asset Management Company Ltd is ₹2,717 apiece on BSE
HDFC Asset Management Company reported a 52% jump in profit for the first quarter of FY24 with average assets under management growing to ₹4.86 lakh crore. The company serves a mutual fund customer base of 71 lakh individuals, with a total of 122 lakh live accounts.