The approval is efficient for one yr, and if HDFC Bank doesn’t full the share acquisition inside that timeframe, the approval will likely be revoked.
IndusInd Bank acknowledged that the RBI approval got here in response to HDFC Bank’s utility to the regulatory authority.
On February 6, HDFC Bank clarified that the RBI’s approval for buying a stake in IndusInd Bank is just not directed at HDFC Bank per se. The time period ‘Bank’ within the disclosure ought to be understood as referring to the HDFC Bank Group.
HDFC Bank’s Clarification
According to a report by CNBC-Awaaz, the clarification from the financial institution highlights that the RBI’s approval for buying a stake in IndusInd Bank is particularly for investments by HDFC Bank’s Asset Management Company (AMC) and Life Insurance divisions.
It was emphasised that, as a promoter, HDFC Bank wanted to acquire approvals from the RBI for these transactions.
On Monday night, IndusInd Bank knowledgeable inventory exchanges that the RBI has granted permission to HDFC Bank to amass an “aggregate holding of up to 9.50 percent of the paid-up share capital or voting rights” within the financial institution.
IndusInd Bank acknowledged that the RBI approval got here in response to HDFC Bank’s utility to the regulatory authority. The approval is efficient for one yr, and if HDFC Bank doesn’t full the share acquisition inside that timeframe, the approval will likely be revoked.
