AU Small Finance Bank (AU SFB) announced that it has received a communication from the Reserve Bank of India (RBI) granting approval to HDFC Bank Limited to acquire an aggregate holding of up to 9.50% of AU SFB’s paid-up share capital or voting rights. The approval also extends to HDFC Bank’s group entities, including HDFC Mutual Fund, HDFC Life Insurance Co. Ltd., HDFC Pension Management Co. Ltd., HDFC ERGO General Insurance Co. Ltd., and HDFC Securities Ltd.
Key Highlights:
- The RBI’s approval is valid for one year from the date of issuance, i.e., January 3, 2025. If the acquisition is not completed within this timeframe, the approval will stand canceled.
- The acquisition is subject to compliance with relevant regulations, including the Banking Regulation Act, RBI’s Master Directions on Acquisition and Holding of Shares, SEBI regulations, FEMA guidelines, and other applicable statutes.
This strategic development underscores HDFC Bank’s intent to expand its footprint in the small finance banking space, potentially enhancing synergies across its group entities.
