The RBI has granted HDFC Bank’s entities approval to acquire aggregate holding of up to 9.5 per cent in six banks including Axis Bank, Suryoday Small Finance Bank, ICICI Bank, Bandhan Bank, Yes Bank and IndusInd Bank, the private lender informed in a stock exchange filing.
“The Reserve Bank of India (“RBI”) vide its letters dated February 05, 2024, has given its approval to HDFC Bank Limited ( which includes its group entities viz HDFC Mutual Fund, HDFC Life Insurance Company Limited, HDFC ERGO General Insurance Company Limited and others) to acquire “aggregate holding” of up to 9.50 per cent of the share capital or voting rights
The respective banks have separately issued stock exchange intimations.
Since the RBI directions are applicable to HDFC Bank, the bank had made the application to RBI on behalf of the group. The RBI’s approval comes after a thorough evaluation of the proposal, considering regulatory compliance and market dynamics.
The approvals were granted pursuant to applications made by HDFC Bank (as a promoter/ sponsor of the Group) to the Reserve Bank of India (RBI) on December 18, 2023.
The approval given by the central bank (RBI) is valid for a period of one year from the date of RBI’s letter, i.e., till February 4, 2025. “Further HDFC Bank shall ensure that the “aggregate holding” in the above-mentioned banks does not exceed 9.50 per cent of the paid-up share capital or voting rights of the respective banks, at all times,” HDFC Bank said in the exchanges filing.
The (HDFC) bank however clarified that it does not intend to invest in these banks, since the “aggregate holding” of HDFC Bank group, was likely to exceed the prescribed limit of 5 per cent, an application seeking approval of RBI for increase in investment limits was made.
Source: Economic Times