NEW DELHI: HDFC Bank Group has received approval from the Reserve Bank of India (RBI) to acquire aggregate holding of up to 9.5% of the paid-up share capital or voting rights in six banks.
These banks include Axis Bank, Survoday Small Finance Bank, ICICI Bank, Bandhan Bank, YES Bank and IndusInd Bank. HDFC Bank said that the above investments by HDFC Bank Group are in the normal course of business of the respective group entities such as HDFC Bank, HDFC Mutual Fund, HDFC Life Insurance Company Limited, HDFC ERGO General Insurance Company Limited and others. RBI’s approval is valid for one year from the date of RBI’s letter (till February 4, 2025).
HDFC Bank said it will ensure that the “aggregate holding” in the above-mentioned banks does not exceed 9.5% of the paid-up share capital or voting rights of the respective banks, at all times.
The Mumbai-based lender added that it had no intention to increase its investment in the 6 banks but since the “aggregate holding” of HDFC Bank group was likely to exceed the prescribed limit of 5%, an application seeking approval from RBI for an increase in investment limits was made on December 19, 2023.
As per the latest data available, HDFC Bank held a 3% stake in YES Bank as of December 31. HDFC Life Insurance holds a 2.92% stake in Suryoday, whereas HDFC Pension Management has a 1.88% stake in IndusInd Bank. HDFC Mutual Fund has 2.76% voting rights in ICICI Bank, 2.49% in Axis Bank, and 2.23% in IndusInd Bank. Fresh announcement by HDFC Bank comes after the RBI on January 25 gave nod to state-run Life Insurance Corporation (LIC) to acquire a 9.99% stake in the country’s largest private lender. At the end of December quarter, LIC’s holding in HDFC Bank stood at 5.19%.