The approval for buying the stakes is meant for investments by HDFC Asset Management Company, HDFC Ergo and HDFC Life Insurance. (Representative picture)
The firm acknowledged that the approval extends to the HDFC Bank group, encompassing its asset administration firm, life insurance coverage firm, and different entities.
HDFC Bank on Tuesday mentioned RBI has given approval to the group to amass as much as 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 beneath 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 mentioned in a regulatory submitting.
The six lenders through 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 12 months until February 4, 2025, it mentioned.
As per RBI instructions, HDFC Bank must be sure that the mixture holding within 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 “aggregate holding” of HDFC Bank Group, was more likely to exceed the prescribed restrict of 5 per cent, an software looking for approval of RBI for enhance in funding limits was made,” it mentioned.
Further, for the reason that RBI instructions are relevant on HDFC Bank, the financial institution has made the appliance to RBI on behalf of the group, it mentioned.
The RBI has additionally mandated that the group purchase main shareholding inside one 12 months in all of the banks from the date of the approval, with out which it will stand cancelled.
Yes Bank
According to the shareholding sample of Yes Bank, 100% stake is held by the general public. Of this, LIC holds 4.34 % stake within the lender whereas SBI-led consortium (together with Axis Bank, HDFC Bank, ICICI Bank, Kotak Bank) maintain 37.23 % stake.
The group has no stake in Suryoday Small Finance.
The RBI approval is topic to compliance with the related provisions of 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 laws relevant.
(With company inputs)
