SBI Funds Management (SBIFML) has received approval from the Reserve Bank of India (RBI) to acquire a stake of up to 9.99% in HDFC Bank, according to an announcement made by the private sector lender on March 17, 2023. HDFC Bank revealed in an exchange filing that the RBI granted approval based on SBIFML’s application.
In a letter dated May 16, 2023, addressed to SBIFML, the RBI confirmed its approval for SBIFML to acquire up to 9.99% of the paid-up share capital or voting rights of HDFC Bank Limited, as reported by the bank. The statement also mentioned that the RBI has advised SBIFML to complete the acquisition of the major shareholding within six months, specifically by November 15, 2023.
To comply with regulatory requirements, SBIFML must ensure that its aggregate holding in HDFC Bank remains below 10% of the paid-up share capital or voting rights at all times.
Following the announcement of the deal, HDFC Bank shares experienced a slight decrease in value. The shares closed at Rs 1,638.65 apiece on the BSE, representing a 0.49% decline from the opening price of Rs 1,646.75.
About HDFC Bank:
HDFC Bank Limited, with its headquarters located in Mumbai, is a prominent Indian banking and financial services institution. It stands as the largest private sector bank in India in terms of assets and ranks as the 10th largest bank globally based on market capitalization as of April 2021.
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