RBI approved HDFC Bank to acquire over 9.5% stake in IndusInd Bank

On Monday, the Reserve Bank of India gave nod to the largest private lender HDFC Bank group to acquire a nearly 9.5% stake in IndusInd Bank as per the company's official statement.

RBI approved HDFC Bank to acquire over 9.5% stake in IndusInd Bank

New Delhi: On Monday, the Reserve Bank of India gave the nod to the largest private lender HDFC Bank group to acquire a nearly 9.5% stake in the notable private sector Banks as per the company's official statement. The applicant HDFC Bank Limited includes its group entities viz HDFC Mutual Fund, HDFC Life Insurance Company Limited, and HDFC ERGO General Insurance Company.

According to the official data released by the applicant bank, the central bank has approved the application made by the applicant [HDFC Bank]. The respective approval has been under Regulation 30 of the SEBI Listing Regulations which has authenticated the respective approval for acquiring aggregate holding of up to 9.50 percent of the paid-up share capital or voting rights in notable private banks listed as follows:
 

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1-Axis Bank

2-Suryodaya Small Finance Bank

3-ICICI Bank

4-Bandhan Bank

5-Yes Bank Limited

6-IndusInd Bank

The approval is subjected to the terms and conditions to acquire major shareholding within one year from the date mentioned. Meanwhile, it should be ensured that the aggregate holding in the respective mentioned banks does not exceed 9.5 percent of the paid-up share capital or voting rights of the banks.

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According to the statement released by HDFC Bank Group, if the aggregate holding falls below 5 percent then prior approval of the RBI will be required to increase it to 5 percent or more of the paid-up share capital or voting rights of the Bank. The approvals were granted as per the application frame by HDFC Bank [as a promoter/ sponsor of the group] to RBI on 18 December 2023.

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