File image of the headquarters of HDFC financial institution in Mumbai
| Photo Credit: Reuters
HDFC Bank on Tuesday stated RBI has given approval to the group to acquire up to 9.5 per cent stake every in six lenders, together with ICICI Bank and Axis Bank.
The Reserve Bank of India (RBI) gave its approval on February 5, 2024.
Entities underneath HDFC Bank Group are HDFC Mutual Fund, HDFC Life Insurance Company, HDFC ERGO General Insurance Company and others.
“The approvals were granted pursuant to applications made by HDFC Bank (as a promoter/ sponsor of the Group) to RBI on December 18, 2023,” HDFC Bank stated in a regulatory submitting.
The six lenders in which HDFC Bank will take stake are: Axis Bank, Suryoday Small Finance Bank, ICICI Bank, Bandhan Bank, Yes Bank, and IndusInd Bank. The RBI’s approval is legitimate for a interval of 1 yr until February 4, 2025, it stated.
As per RBI instructions, HDFC Bank could have to make sure that the combination holding in the 6 banks doesn’t exceed 9.50 per cent of the paid up share capital or voting rights of the respective banks, always.
“In view of the same, whilst HDFC Bank does not intend to invest in these banks, since the “mixture 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,” it stated.
Further, because the RBI instructions are relevant on HDFC Bank, the financial institution has made the applying to RBI on behalf of the group, it stated.
