RBI’s agreement to acquire stake in IndusInd Bank does not suit HDFC Bank

On February 6, HDFC Bank clarified that the approval of the Reserve Bank of India to acquire shares of IndusInd Bank was not directed at HDFC Bank itself. The term “Bank” in this disclosure shall be understood to mean HDFC Bank Group.

HDFC Bank clarifies

according to a report CNBC-AvazThe bank’s clarification highlighted that the RBI’s approval to acquire stake in IndusInd Bank was specifically for investments in HDFC Bank’s Asset Management Company (AMC) and life insurance unit. It was stressed that as the promoter, HDFC Bank would need approval from the Reserve Bank of India to proceed with these transactions.

Late on Monday, IndusInd Bank informed stock exchanges that the Reserve Bank of India has approved HDFC Bank’s acquisition of “up to 9.50 per cent of the paid-up share capital or voting rights” of the bank.

IndusInd Bank said the RBI’s approval was in response to HDFC Bank’s application to the regulator. The approval is valid for one year and will be revoked if HDFC Bank does not complete the share acquisition within this period.