NEW DELHI: The Reserve Bank of India (RBI) has given its approval to SBI Funds Management (SBIFML) to acquire up to 9.99 per cent stake in HDFC Bank, the private sector lender said on Wednesday.
The approval has been granted with reference to the application made by SBIFML to RBI, HDFC Bank said in an exchange filing. “we would like to inform you that the RBI vide its letter dated May 16, 2023 addressed to SBIFML, has accorded its approval to SBIFML for acquiring up to 9.99 per cent of the paid-up share capital or voting rights of HDFC Bank Limited,” the bank said.
It further said SBIFML has been advised by RBI to acquire the major shareholding in the bank within a period of six months (by November 15, 2023). On Wednesday, HDFC Bank stock closed 0.39 percent lower at Rs 1,640.85 apiece on NSE. HDFC Bank is in the process of getting itself merged with HDFC, which is expected to be completed by the end of June quarter.
The central bank asked SBIFML to acquire the aforementioned stake in the bank within six months, or by November 15, 2023, the bank stated. Also, as per RBI, SBIFML’s total stake in HDFC Bank should never exceed 10% of the bank’s paid-up share capital or voting rights.