The Reserve Bank of India (RBI) has granted approval to HDFC Bank to purchase an “aggregate holding” of up to 9.50 p.c of the paid-up share capital or voting rights” in IndusInd Bank, in accordance to the corporate’s trade submitting.
The approval comes after HDFC Bank submitted an utility to the regulator. The validity of the approval is for one yr, and if HDFC Bank fails to full the acquisition inside this timeframe, the approval can be revoked.
“The Reserve Bank of India, vide its letter dated February 5, 2024 has accorded its approval to HDFC Bank Limited for acquiring “aggregate holding” of up to 9.50 per cent of the paid-up share capital or voting rights in IndusInd Bank. The aforesaid RBI approval has been granted with reference to the application made by the applicant to the RBI,” stated IndusInd financial institution in an trade submitting.
The RBI’s approval is contingent upon compliance with varied regulatory frameworks, together with 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), FEMA, Sebi laws, and different related laws.
HDFC Bank should additionally be sure that its “aggregate holding” in IndusInd Bank doesn’t surpass 9.50 per cent of the paid-up share capital or voting rights at any given time. Additionally, if the “aggregate holding” falls beneath 5 per cent, prior approval from the RBI can be required to enhance it to 5 per cent or extra of the paid-up share capital or voting rights of IndusInd Bank
