HDFC Bank Group has received approval from the Reserve Bank of India to acquire up to 9.50% stake in six private lenders. The license enables the group to purchase stakes in ICICI Bank, IndusInd Bank, Yes Bank, Axis Bank, Bandhan Bank and Suryoday Small Finance Bank.
The approval covers the HDFC Bank group, including its asset management companies, life insurance companies and other entities, the company said.
The approval for stake acquisition was for investments in HDFC Asset Management Company (AMC), HDFC Ergo and HDFC Life Insurance, the bank said in an exchange filing.
As of December 31, HDFC Asset Management held 2.34%-4.3% stake in ICICI Bank, IndusInd Bank, Yes Bank, Axis Bank and Bandhan Bank. Fund control the report said.
The RBI has also asked the group to acquire major stakes in all banks within one year from the date of approval, failing which the group will be cancelled.
It’s a bank
According to the shareholding structure of Yes Bank, public shareholding is 100%. Among them, LIC holds 4.34% stake in the bank, while the SBI-led consortium (including Axis Bank, HDFC Bank, ICICI Bank, Kotak Bank) holds 37.23% stake.
The group does not have any stake in Suryoday Small Finance.
RBI’s approval is subject to the Banking Regulation Act, 1949, RBI’s general instructions and guidelines dated January 16, 2023 on acquisition and holding of shares or voting rights in banking companies, FEMA, Sebi regulations and other applicable regulations relevant regulations.
(Institutional investment)
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