The Reserve Bank of India (RBI) has approved HDFC Bank’s proposal to acquire aggregate holding of 9.5% of the paid-up share capital or voting rights in IndusInd Bank, the bank said in a stock exchange filing late evening on Monday, February 5. The decision comes in following HDFC Bank’s application to RBI to acquire to the same.
If the applicant (HDFC Bank) fails to acquire major shareholding within a period of one year from the date of the aforesaid RBI letter, the approval shall stand cancelled, RBI conveyed to IndusInd Bank via a letter dated February 5.
The regulator further said that HDFC Bank has to ensure that the “aggregate holding” in the Bank does not exceed 9.50% of the paid-up share capital or voting rights of the Bank, at all times. If the “aggregate holding” falls below 5%, prior approval of the RBI will be required to increase it to 5% or more of the paid-up share capital or voting rights of the Bank.