Business

RBI Grants Approval: SBI Funds Management Authorized to Acquire 9.99% Stake in HDFC Bank

HDFC Bank announced through an exchange notification on May 17 that the Reserve Bank of India (RBI) has granted permission to SBI Funds Management (SBIMFL) to acquire a maximum of 9.99% of the paid-up share capital or voting rights of HDFC Bank. The approval was given in response to SBIFML’s application to the RBI, and HDFC Bank mentioned that the approval is subject to specific conditions.

Also Read: Patanjali Faces Legal Action for Alleged Inclusion of Cuttlefish in Tooth Powder, Raising Consumer Alarm

The bank stated that the RBI has instructed SBIFML to obtain the mentioned majority ownership in the bank by November 15, 2023. Additionally, the RBI has emphasized that SBIFML must maintain their total ownership in HDFC Bank below 10 percent of the paid-up share capital or voting rights of the bank at all times.

During a post-results analyst call following the announcement of HDFC Bank’s January-March 2023 quarterly results, Chief Financial Officer Srinivasan Vaidyanathan revealed that HDFC Bank and HDFC are currently undergoing a merger process, expected to be completed by July of this year.

Also Read: Amazon’s AWS Announces Its Plans to Invest $12 bn into India’s cloud Infra

HDFC Ltd has obtained approval letters from various regulatory bodies, including the Reserve Bank of India, Securities and Exchange Board of India (SEBI), Pension Fund Regulatory and Development Authority (PFRDA), Competition Commission of India, as well as India’s stock exchanges BSE and the National Stock Exchange.

Furthermore, HDFC Bank or HDFC Limited has received approval from the RBI to increase their ownership in HDFC Life Insurance and HDFC ERGO General Insurance to more than 50 percent. The bank has officially announced that the central bank has granted HDFC Bank or HDFC Ltd the authority to raise their shareholding in HDFC Life Insurance and HDFC ERGO General Insurance above 50 percent prior to the merger taking effect.

Shruti Rag

Recent Posts

Renowned Folk Singer Sharda Sinha Passes Away At 72; PM Modi Expresses Condolences

PM Modi expressed sorrow over Sinha’s death. "The passing of Sharda Sinha ji is deeply…

2 hours ago

US Election: India Confident Of Strong US Relations And Quad Continuity, Says Jaishankar

Jaishankar noted that the US-India relationship has flourished under both Democratic and Republican leadership, including…

3 hours ago

Sanskriti Diwas Marks 98th Birth Anniversary Of Kashiraj Dr Vibhuti Narayan Singh

Program coordinator Chakravarti Vijay Navad announced that 11 prominent individuals received the Kashiraj Dr. Vibhuti…

4 hours ago

Mallikarjun Kharge Slams ‘Batenge Toh Katenge’ Slogan During Jharkhand Campaign

Kharge emphasized that the BJP leaders promote divisive rhetoric as part of their agenda. He…

5 hours ago

Police Arrest Two In Fake Marriage Certificate Racket In Name Of Arya Samaj

DCP Nagar Abhishek Bharti revealed that five couples, including Shivani and Shrikant Yadav, recently filed…

6 hours ago

India And Nigeria Strengthen Counter-Terrorism Cooperation In Second Strategic Dialogue

Doval and Ribadu held detailed talks on challenges linked to terrorism and radicalization, including those…

6 hours ago