Contrary to any misconceptions, HDFC Bank clarified on February 6 that the recent RBI approval for acquiring a stake in IndusInd Bank is not applicable to HDFC Bank itself. The term ‘Bank’ mentioned in the disclosure should be interpreted as HDFC Bank Group, as specified by the bank to CNBC-Awaaz.
The RBI’s approval for acquiring a stake in IndusInd Bank is directed towards investments by HDFC Bank’s Asset Management Company (AMC) and HDFC Life Insurance. It was underscored that, as a promoter, HDFC Bank was obligated to seek approvals from the RBI for these specific transactions.
IndusInd Bank, in a late-night disclosure on Monday, informed the stock exchanges that the RBI has granted approval to HDFC Bank to acquire an “aggregate holding of up to 9.50 percent of the paid-up share capital or voting rights” in the bank.
The approval, as communicated by IndusInd Bank, follows the application submitted by HDFC Bank to the regulatory authority. It is important to note that the approval has a validity period of one year, and if HDFC Bank fails to acquire the specified shareholding within this timeframe, the approval will be considered null and void.
The RBI’s green signal for this acquisition is contingent upon 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 applicable regulations.
As per the shareholding pattern of IndusInd Bank, the promoters, IndusInd International Holdings Ltd and IndusInd Ltd collectively hold a 16.45 percent stake in the bank. Mutual funds collectively possess a 15.63 percent stake as of December 2023, while insurance companies, including LIC, hold a 7.04 percent stake. Foreign portfolio investors jointly hold a 38.24 percent stake as of the December quarter.