The Reserve Bank of India has allowed HDFC Bank Group to acquire up to 9.50 percent stakes in IndusInd Bank, Yes Bank, Axis Bank, ICICI Bank, Suryoday Small Finance Bank and Bandhan Bank.
The approval for acquiring the stakes is intended for investments by HDFC Asset Management Company (AMC), HDFC Ergo and HDFC Life Insurance, said the bank in an exchange filing.
The approval is valid for one year and if HDFC Bank fails to acquire the shareholding within that period, the approval stands cancelled.
The RBI approval is subject to compliance with the relevant provisions of the Banking Regulation Act, 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 regulations applicable.
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Further, HDFC Bank has to ensure that the “aggregate holding” in IndusInd does not exceed 9.50 percent of the paid-up share capital or voting rights of IndusInd, at all times. If the “aggregate holding” falls below 5 percent, prior approval of the RBI will be required to increase it to 5 percent or more of the paid-up share capital or voting rights of IndusInd Bank and Yes Bank.
Shareholding pattern
According to the shareholding pattern of IndusInd Bank, promoters IndusInd International Holdings Ltd and IndusInd Ltd together hold 16.45 percent stake in the bank. Mutual funds hold a combined 15.63 percent stake in the bank as of December 2023 while insurance companies, including LIC, hold 7.04 percent stake. Foreign portfolio investors together hold 38.24 percent stake as of December quarter.
According to shareholding pattern of Yes Bank, 100 percent stake is held by the public. Of this, LIC holds 4.34 percent stake in the lender while SBI-led consortium (including Axis Bank, HDFC Bank, ICICI Bank, Kotak Bank) hold 37.23 percent stake.
Further, HDFC AMC has 3.43 percent stake in ICICI Bank and 2.57 percent stake in Axis Bank.
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