HDFC Bank Gets RBI Approval For Group Entities
HDFC Bank has received approval from the Reserve Bank of India (RBI) to allow its group entities to collectively hold up to 9.50 per cent stake in IndusInd Bank, the bank informed the stock exchange in a filing.
Entities Covered And Aggregate Holding
The bank stated that RBI granted permission to HDFC Bank, which is the promoter and sponsor of several group entities, to acquire an “aggregate holding” of up to 9.50 per cent of the paid-up share capital or voting rights in IndusInd Bank. These group entities include HDFC Mutual Fund, HDFC Life Insurance Company Limited, HDFC ERGO General Insurance Company Limited, HDFC Pension Fund Management Limited and HDFC Securities Limited.
Validity And Compliance With RBI Directions
The approval given by the central bank will remain valid for a period of one year, starting from the date of the RBI’s letter, until December 14, 2026. HDFC Bank clarified that the approval is linked to rules issued by the RBI under the “Commercial Banks – Acquisition and Holding of Shares or Voting Rights” Directions, 2025. The term “aggregate holding” includes shares held directly and indirectly by all promoter group entities.
Monitoring And Regulatory Adherence
The bank explained that it does not intend to make a direct investment in IndusInd Bank, but the combined holding of its group entities is likely to cross the earlier limit of 5 per cent. The RBI’s approval allows HDFC Bank’s group companies to continue investments within the 9.50 per cent limit, and the bank will closely monitor holdings to remain compliant.
Current Share Price: The share of HDFC Bank is trading at Rs 995 on the National Stock Exchange.
(This article has been syndicated from ANI)
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