HDFC Bank gets RBI nod to hike stake in six banks

Feb 6, 2024

Mumbai: HDFC Bank has got approval reserve Bank of India Will increase its stake in six banks: Axis, Suryoday Small Finance, ICICIbond, indusindAnd Yes Bank.
The private lender and its affiliated entities, including HDFC Mutual Fund, HDFC Life Insurance, HDFC ERGO General Insurance, have been allowed to acquire an aggregate stake of up to 9.5% of the share capital or voting rights in the six banks.
These approvals come from applications submitted to the RBI on December 18, 2023 by HDFC Bank, acting as the promoter/sponsor of the group. As per RBI norms once the stake of any entity in the bank exceeds 6%, permission will have to be taken before buying the entity. Any other share. The RBI approval is valid for one year from the date of its letter, expiring on February 4, 2025. HDFC Bank will have to ensure that its total stake in the six banks does not exceed 9.5% of their paid-up share capital or voting rights. All the time.
As per RBI norms on ownership of private banks, the total holding includes shareholding of banks and institutions. Although HDFC Bank does not intend to invest directly in these banks, an application was made to the RBI due to the possibility of the total stake of HDFC Bank Group exceeding the prescribed limit of 5%.

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