HDFC Bank Gets RBI Approval To Acquire Up To 9.5% Stake In ICICI Bank, Axis Bank, 4 others | Companies News

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New Delhi: HDFC Bank on Tuesday said that it has got RBI approval to acquire up to 9.5 percent stake each in six lenders –ICICI Bank, Axis Bank, IndusInd Bank, Bandhan Bank, Yes Bank and Suryoday Small Finance Bank.

“Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Reserve Bank of India (“RBI”) vide its letters dated February 05, 2024, has given its approval to HDFC Bank Limited ( which includes its group entities viz HDFC Mutual Fund, HDFC Life Insurance Company Limited, HDFC ERGO General Insurance Company Limited and others) to acquire “aggregate holding” of up to 9.50% of the share capital or voting rights in the following Banks: 1. Axis Bank Limited; 2. Suryoday Small Finance Bank Limited; 3. ICICI Bank Limited; 4. Bandhan Bank Limited; 5. Yes Bank Limited; 6. IndusInd Bank Limited”

HDFC Bank said that the RBI’s approval is valid for a period of one year from the date of RBI’s letter, i.e., till February 4, 2025. 

“Further HDFC Bank shall ensure that the “aggregate holding” in the above‐mentioned banks does not exceed 9.50% of the paid‐up share capital or voting rights of the respective banks, at all times,” it added.

HDFC Bank said 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.

As per RBI directions, HDFC Bank will have to ensure that the aggregate holding in the 6 banks does not exceed 9.50 per cent 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 per cent, an application seeking approval of RBI for increase in investment limits was made,” it said.

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