On February 6, HDFC Bank clarified that the RBI’s approval for acquiring a stake in IndusInd Bank is not directed at HDFC Bank per se. The term ‘Bank’ in the disclosure should be understood as referring to the HDFC Bank Group.
Entities under HDFC Bank Group are HDFC Mutual Fund, HDFC Life Insurance Company, HDFC ERGO General Insurance Company and others.
HDFC Bank’s Clarification
According to a report by CNBC-Awaaz, the clarification from the bank highlights that the RBI’s approval for acquiring a stake in IndusInd Bank is specifically for investments by HDFC Bank’s Asset Management Company (AMC) and Life Insurance divisions.
It was emphasised that, as a promoter, HDFC Bank needed to obtain approvals from the RBI for these transactions.
On Monday evening, IndusInd Bank informed stock exchanges that the RBI has granted permission 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.
IndusInd Bank stated that the RBI approval came in response to HDFC Bank’s application to the regulatory authority. The approval is effective for one year, and if HDFC Bank does not complete the share acquisition within that timeframe, the approval will be revoked.
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