RBI has approved HDFC to acquire stake in 6 banks including Induslnd bank

RBI has approved HDFC Bank to acquire "a total of 9.5%" stake in Axis, Bandhan, ICICI, Indusland, Suryoday and Yes Bank.

HDFC clarified on Tuesday that this approval is not only for HDFC Bank but for all the group companies of HDFC like HDFC Bank Limited, HDFC Life Insurance, HDFC ERGO, HDFC asset managemnet company.

RBI has made it clear that this approval of HDFC is valid only for 1 year, its valid limit is from 5 February 2024 to 5 February 2025. If HDFC fails to acquire the stake of Indusland Bank within this limit, this approval will be cancelled.

This approval of RBI is in accordance with the relevant provisions of Banking Companies Regulation Act 1949, Master Direction of RBI. And it is mandatory for HDFC to comply with the guidelines, FEMA, SEBI regulations and other applicable regulations relating to acquisition and holding of shares or voting rights in banking companies.

Induslnd Bank said in the exchange filing that "The applicant must ensure that its total stake in the bank does not exceed 9.5%.

According to the exchange report, promoters have 16.45% stake in Induslnd International Holding Limited and Induslnd Limited, Mutual Funds have 15.63% stake, LIC or other insurance agencies have 7.04% stake and the highest stake is with FPI. In December 2023, FPI held a 38.24% stake in Induslnd.