HDFC Bank on February 6 clarified that the RBI approval to acquire a stake in IndusInd Bank does not pertain to HDFC Bank itself. The term 'Bank' in the disclosure should be interpreted as HDFC Bank Group, it clarified to CNBC-Awaaz.
The RBI approval for acquiring a stake in IndusInd Bank is intended for investments by HDFC Bank's Asset Management Company (AMC) and HDFC Life Insurance. It was emphasised that as a promoter, HDFC Bank had to seek approvals from RBI for these transactions.
IndusInd Bank late on Monday evening informed stock exchanges that the RBI has allowed HDFC Bank to acquire an “aggregate holding of up to 9.50 percent of the paid-up share capital or voting rights” in the lender.
IndusInd Bank said the RBI approval followed the application made by HDFC Bank to the regulator. The approval is valid for one year and if HDFC Bank fails to acquire the shareholding within that period, the approval stands cancelled.
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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.
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, holds 7. 04 percent stake. Foreign portfolio investors together hold 38.24 per cent stake as of December quarter.
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