The Reserve Bank of India (RBI) has given the green light to HDFC Bank to buy up to 9.5% of IndusInd Bank’s shares.
IndusInd Bank shared this news in a stock exchange filing, saying that RBI’s approval came through on February 5, 2024. This means that HDFC Bank can now acquire a stake in IndusInd Bank of up to 9.5% of its total shares or voting rights.
However, there’s a condition attached: If HDFC Bank’s stake in IndusInd Bank falls below 5%, they will need RBI’s approval to increase it back up to 5% or more.
This approval from RBI comes with certain rules that HDFC Bank must follow. These include obeying the Banking Regulation Act of 1949, RBI’s guidelines on shareholding in banks, rules under the Foreign Exchange Management Act of 1999, regulations set by the Securities and Exchange Board of India (SEBI), and other relevant laws and guidelines.
