HDFC Bank announced on Tuesday that its group entities have obtained approval from the Reserve Bank of India (RBI) to acquire an aggregate holding of up to 9.5% of the paid-up share capital or voting rights in six banks. These banks include Axis Bank, Suryoday Small Finance Bank, ICICI Bank, Bandhan Bank, YES Bank, and IndusInd Bank.The approval encompasses shareholding by HDFC Bank, entities under the same management/control, mutual funds, trustees, and promoter group entities. HDFC Bank disclosed that the approvals were secured subsequent to applications submitted to the RBI on December 18, 2023.The RBIs consent is valid for a year from the date of the letter, extending until February 4, 2025. HDFC Bank must ensure that its aggregate holding in these six banks does not surpass 9.50% of their paid-up share capital or voting rights at any given time.Although HDFC Bank does not have intentions to directly invest in these banks, it anticipated that the aggregate holding of HDFC Bank group might exceed the prescribed limit of 5%. Hence, an application was filed to seek RBI approval for an increase in investment limits. Additionally, as the RBI Directions apply to HDFC Bank, the bank submitted the application on behalf of the group.
