The Reserve Bank of India (RBI) on Monday approved HDFC Bank’s proposal to acquire nearly 9.5 per cent stake in IndusInd Bank, the company said in an exchanges filing.
“Pursuant to Regulation 30 of the SEBI Listing Regulations, we would like to inform you that the Reserve Bank of India (“RBI”) vide its letter dated February 5, 2024 has accorded its approval to HDFC Bank Limited (“applicant”) for acquiring “aggregate holding” of up to 9.50 per cent of the paid-up share capital or voting rights in IndusInd Bank Limited (“the Bank”). The aforesaid RBI approval has been granted with reference to the application made by the applicant to the RBI,” said IndusInd Bank.
The RBI, while granting the approval has also conveyed that if the HDFC Bank fails to acquire major shareholding within a period of one year from the date of the aforesaid RBI letter, the approval will stand cancelled.
The central bank has further told the applicant (HDFC Bank) to ensure that the “aggregate holding” in the bank does not exceed 9.5 per cent of the paid-up share capital or voting rights of the bank, at all times.”If the “aggregate holding” falls below 5 per cent, prior approval of the RBI will be required to increase it to 5 per cent or more of the paid-up share capital or voting rights of the Bank,” read IndusInd Bank’s statement.
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