HDFC Bank group gets RBI nod to acquire up to 9.5 pc in 6 banks

"The approvals were granted pursuant to applications made by HDFC Bank (as a promoter/sponsor of the Group) to the RBI on December 18, 2023,” the bank said.

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The ‘aggregate holding” includes shareholding by the bank and entities under the same management/ control, mutual funds, trustees and promoter group entities (Representational Image)

HDFC Bank on Tuesday announced that the HDFC Bank group entities have received the Reserve Bank of India’s (RBI) approval to acquire “aggregate holding” of up to 9.5 per cent of the paid-up share capital or voting rights in six banks — Axis Bank, Suryoday Small Finance Bank, ICICI Bank, Bandhan Bank, YES Bank and IndusInd Bank.

The ‘aggregate holding” includes shareholding by the bank and entities under the same management/ control, mutual funds, trustees and promoter group entities. “The approvals were granted pursuant to applications made by HDFC Bank (as a promoter/sponsor of the Group) to the RBI on December 18, 2023,” the bank said.

The RBI’s approval is valid for a period of one year from the date of RBI’s letter – which is till February 4, 2025. Further HDFC Bank should ensure that the “aggregate holding” in these six banks does not exceed 9.50% of the paid‐up share capital or voting rights of the respective banks, at all times.

While 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 the RBI for increase in investment limits was made, it said. “Further, since the RBI Directions is applicable to HDFC Bank, the bank had made the application to RBI on behalf of the group,” it said.