The Reserve Bank of India has approved HDFC Bank Group’s acquisition of up to 9.50 per cent holdings in IndusInd Bank, Yes Bank, Axis Bank, ICICI Bank, Suryoday Small Finance Bank, and Bandhan Bank.
The approval to acquire the stakes is intended for investments by HDFC Asset Management Company (AMC), HDFC Ergo, and HDFC Life Insurance, the bank stated in an exchange filing.
The approval is valid for one year, and if HDFC Bank fails to purchase the shares within that time frame, the approval is cancelled.
The RBI approval is subject to compliance with the relevant provisions of the Banking Regulation Act of 1949, RBI’s Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated January 16, 2023, FEMA, Sebi regulations, and other legislation applicable.
Furthermore, HDFC Bank must ensure that its “aggregate holding” in IndusInd does not exceed 9.50 per cent of IndusInd’s paid-up share capital or voting rights at any time. If the “aggregate holding” falls below 5 per cent, the RBI must approve an increase to 5 per cent or higher of IndusInd Bank and Yes Bank’s paid-up share capital or voting rights.
According to IndusInd Bank’s shareholding pattern, promoters IndusInd International Holdings Ltd and IndusInd Ltd jointly own 16.45 per cent of the bank. As of December 2023, mutual funds held a combined 15.63 per cent ownership in the bank, while insurance firms, including LIC, owned 7.04 per cent. As of the December quarter, foreign portfolio investors held a 38.24 per cent stake.
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According to Yes Bank’s shareholding pattern, the public owns a 100 per cent stake. LIC owns 4.34 per cent of the lender, while SBI and its consortium (including Axis Bank, HDFC Bank, ICICI Bank, and Kotak Bank) own 37.23 per cent.
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