RBI nod to HDFC Bank to buy stakes in six banks including ICICI and Axis
- EP News Service
- Feb 06, 2024
MUMBAI: HDFC Bank said that the Reserve Bank of India (RBI) has given it the approval to acquire up to 9.5 per cent stake each in six lenders, including ICICI Bank, Axis Bank, Suryoday Small Finance Bank, Bandhan Bank, Yes Bank, and IndusInd Bank and that RBI's approval is valid for a period of one year till February 4, 2025.
HDFC Bank said in a regulatory filing that the approvals were granted pursuant to applications made by HDFC Bank (as a promoter/ sponsor of the Group) to RBI on December 18, 2023.
Entities under HDFC Bank Group are HDFC Mutual Fund, HDFC Life Insurance Company, HDFC ERGO General Insurance Company and others who have been permitted to acquire an aggregate holding of up to 9.5% of the share capital or voting rights in the said six banks.
The bank further said, "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 per cent, an application seeking approval of RBI for increase in investment limits was made."
As of July 2023, HDFC Bank merged with HDFC Ltd. (a leading housing finance company) to become the 7th largest lender in the world and the largest bank in India.