India’s largest private sector lender HDFC Bank has received the Reserve Bank of India’s approval to pick up an aggregate stake of up to 9.5% in Kotak Mahindra Bank, AU Small Finance Bank and Capital Small Finance Bank.
According to an exchange filing released by the lender late Friday night, the regulator’s green signal is valid till January 2, 2026.
“The Reserve Bank of India has given its approval to HDFC Bank to acquire ‘aggregate holding’ of up to 9.50% of the share capital or voting rights in Kotak Mahindra Bank, AU Small Finance Bank and Capital Small Finance Bank,” the notification said.
HDFC Bank needs to ensure that the holding by its group entities – HDFC Mutual Fund, HDFC Life Insurance Company, HDFC ERGO General Insurance Company and HDFC Pension Fund Management Limited – does not exceed 9.5%.
The lender explained that while it does not plan to invest in these banks since the holding by its group entities could exceed the 5% investment cap, it had sought an approval from RBI to increase investment limits.
Source: Economic Times