In a groundbreaking development, HDFC Bank, the largest private sector bank in India, has obtained approval from the Reserve Bank of India (RBI) to acquire a substantial stake in six prominent banks. This strategic move includes stakes in Yes Bank, IndusInd Bank, Axis Bank, Bandhan Bank, ICICI Bank, and Suryoday Small Finance Bank.
The proposal, seeking a 9.50 percent stake in each of these banks, has received the regulatory green light, marking a significant stride for HDFC Bank in fortifying its position within the banking sector.
This strategic acquisition follows HDFC Bank’s recent merger of two businesses, demonstrating its commitment to consolidating influence and market presence in the financial industry.
The approval granted by RBI is applicable to HDFC Group, the parent company of HDFC Bank, and extends to its asset management company. However, it comes with a time constraint, valid for one year. HDFC Group is required to complete the acquisition within this timeframe; failure to do so will result in the revocation of the approval.
RBI has specified that HDFC’s acquisition must be in the form of paid-up share capital or an aggregate holding of voting rights, ensuring compliance with regulations.
Crucially, customers of IndusInd Bank, Yes Bank, Axis Bank, Bandhan Bank, ICICI Bank, and Suryoday Small Finance Bank need not worry about any disruptions to their banking services. The approval emphasizes that the functioning of these banks, along with their services and customer experiences, will remain unaffected, providing seamless continuity in banking operations.
