Updated February 6th, 2024 at 18:07 IST
RBI approves HDFC Bank's acquisition of 9.5% stake in six banks
The approval enables HDFC Bank to purchase stakes in ICICI Bank, IndusInd Bank, Yes Bank, Axis Bank, Bandhan Bank, and Suryoday Small Finance Bank.
RBI gives nod to HDFC Bank: Private lender HDFC Bank, announced on Tuesday that it has secured approval from the Reserve Bank of India (RBI) to acquire up to a 9.5 per cent stake in six private banks.
The approval enables HDFC Bank to purchase stakes in ICICI Bank, IndusInd Bank, Yes Bank, Axis Bank, Bandhan Bank, and Suryoday Small Finance Bank. This permission extends to the HDFC Bank group, encompassing its asset management company (AMC), life insurance company, and other subsidiaries.
Furthermore, the RBI has stipulated that the HDFC Bank group must attain a significant shareholding within one year in all the aforementioned banks, failing which the approval would be revoked.
As of December 31, HDFC Asset Management Company held stakes ranging from 2.34 per cent to 4.3 per cent in ICICI Bank, IndusInd Bank, Yes Bank, Axis Bank, and Bandhan Bank.
However, the group did not possess any stake in Suryoday Small Finance Bank.
In terms of financial performance, IndusInd Bank, HDFC Bank, and ICICI Bank, all of which disclosed their quarterly results in January, surpassed profit expectations due to robust loan growth.
Axis Bank reported a 3.7 per cent increase in third-quarter profit, while Yes Bank's net profit more than quadrupled during the October-December period, albeit missing estimates.
Meanwhile, Suryoday Small Finance Bank and Bandhan Bank are yet to announce their financial results.
(With Reuters Inputs)
Published February 6th, 2024 at 10:20 IST