CALCULATE YOUR SIP RETURNS

HDFC Bank Gets RBI Nod to Acquire Stakes in Kotak Mahindra, AU SFB, and Capital SFB

Updated on: Jan 17, 2025, 1:53 PM IST
RBI allows HDFC Bank group entities to acquire up to 9.5% stake in Kotak Mahindra, AU Small Finance Bank, and Capital SFB by January 2026.
HDFC Bank Gets RBI Nod to Acquire Stakes in Kotak Mahindra, AU SFB, and Capital SFB
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

The RBI (Reserve Bank of India) has approved HDFC Bank and its group companies to acquire up to a 9.5% stake in Kotak Mahindra Bank, AU Small Finance Bank, and Capital Small Finance Bank. This approval is valid for 1 year until January 2, 2026.

Approval for Group Entities

In a regulatory filing, HDFC Bank mentioned that the RBI had permitted its group companies—including HDFC Mutual Fund, HDFC Life Insurance, HDFC Pension Management, and HDFC ERGO General Insurance—to collectively own voting rights or up to 9.5% of the paid-up share capital in the 3 banks. The bank must ensure that the combined holdings of its group entities remain within this limit.

Aggregate Holding Rules

The RBI’s guidelines specify that “aggregate holding” includes shares owned by the bank itself, its affiliates, mutual funds, trustees, and promoter group entities. HDFC Bank clarified that it does not plan to directly invest in these banks. However, it applied for approval as the combined holdings of its group entities are likely to exceed the 5% threshold set by the RBI.

Timeline and Conditions

The approval is effective for a one-year period from January 3, 2025, and HDFC Bank must adhere to the prescribed 9.5% limit for its group entities across the 3 banks. This move allows HDFC Bank to strengthen its presence in the banking and financial sector through strategic investments.

About HDFC Bank Limited

HDFC Bank Limited, also known as HDFC, is an Indian banking and financial services company based in Mumbai. With a market capitalisation of $145 billion as of April 2024, HDFC Bank is the third-largest company listed on Indian stock exchanges.

HDFC Bank share price is trading at ₹1,745.05, down by ₹4.15 (0.24%) as of January 6, 9:46 AM. The stock opened at ₹1,740.10 and reached a high of ₹1,757.20 and a low of ₹1,736.30 during the day. The 52-week high and low for the stock are ₹1,880.00 and ₹1,363.55, respectively.

Discover the power of efficient trading with our trading app. Download the Angel One app today and begin your journey to success!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jan 6, 2025, 9:53 AM IST

We're Live on WhatsApp! Join our channel for market insights & updates

Open Free Demat Account!

Join our 2.5 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy ₹0 Account Opening Charges

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 2.5 Cr+ happy customers