HDFC Bank on Tuesday said the Reserve Bank of India (RBI) has given approval to the group to acquire up to 9.5% stake each in six lenders, including ICICI Bank and Axis Bank. The RBI gave its approval on February 5, 2024.
Entities under 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 said in a regulatory filing.
The six lenders in which HDFC Bank will take a stake are Axis Bank, Suryoday Small Finance Bank, ICICI Bank, Bandhan Bank, Yes Bank, and IndusInd Bank. The RBI’s approval is valid for one year till February 4, 2025, it said.
As per RBI directions, HDFC Bank will have to ensure that the aggregate holding in the nine banks does not exceed 9.50% of the paid-up share capital or voting rights of the respective banks, at all times.
“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 likely to exceed the prescribed limit of 5%, an application seeking approval of RBI for an increase in investment limits was made,” it said.
Further, since the RBI directions are applicable to HDFC Bank, the bank has made the application to RBI on behalf of the group, it said.
Edited by Suman Singh
