India’s largest private sector bank, HDFC Bank announced on Tuesday that it has received the approval of the Reserve Bank of India (RBI) to acquire an aggregate holding of around 9.5 percent of the paid-up share capital or voting rights in six banks , which include Axis Bank. , Suryoday Small Finance Bank, ICICI Bank, Bandhan Bank, YES Bank and IndusInd Bank.
HDFC Bank said that the approvals were granted on applications made by HDFC Bank (as promoter/sponsor of the Group) to RBI on December 18, 2023. RBI’s approval is valid for one year from the date of RBI’s letter , until February 4th. , 2025.
The approval is meant for investments by HDFC Asset Management Company (AMC), HDFC Ergo and HDFC Life Insurance, the bank said in an exchange filing.
The private lender will also have to ensure that the “aggregate holding” in IndusInd does not exceed 9.5 percent of the paid-up share capital or voting rights of IndusInd, at all times.
If the “aggregate holding” falls below 5 percent, prior approval of the RBI will be required to increase it to 5 percent or more of the paid-up share capital or voting rights of IndusInd Bank and Yes Bank.
The bank also said that it does not intend to invest in these banks, but since the holding is likely to exceed 5 percent, as per the RBI rules, it has made a request to increase the investment limits.
Yes Bank stock jumped as much as 13 percent in early trade on the NSE. The bank’s shares witnessed strong buying interest during morning deals and opened at Rs 23.10 each on the NSE.
Three of the remaining listed banks on the list were trading in the red. Axis Bank traded 0.82 percent in the red at 1,053.8 rupees apiece, Bandhan Bank was down nearly 1 percent and traded at 220.7 rupees apiece while IndusInd Bank was down more than 1.5 percent and was at 1,515.55 rupees a share.
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