New Delhi: The Reserve Bank of India (RBI) has given the green light to HDFC Bank Group’s proposal to acquire up to 9.5% of the paid-up share capital or voting rights in IndusInd Bank Limited. This approval, disclosed through a regulatory filing by IndusInd Bank with the BSE, follows HDFC Bank Group’s application to the RBI.
The RBI’s approval is contingent upon adherence to various regulatory provisions, including those outlined in the Banking Regulations Act, 1949, RBI’s Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies, the Foreign Exchange Management Act, 1999, regulations by the Securities and Exchange Board of India, and other relevant statutes and guidelines.
Additionally, HDFC Bank Group is required to attain a major shareholding within one year from February 5, 2024. Failure to do so will result in the cancellation of the approval. The group must ensure that its holding in IndusInd Bank remains under 9.5% of the paid-up share capital or voting rights at all times. Furthermore, prior approval from the RBI is necessary if the group’s aggregate holding falls below 5% and then needs to be increased to 5% or more.
