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

Seeing The Lord Among Devotees Is The Pinnacle Of Humility: Gautam Adani At Rath Yatra

Gautam Adani, along with his wife and Karan, participated in the Rath Yatra in Puri,…

2 hours ago

PM Modi Interacts With Group Captain Shubhanshu Shukla Aboard The ISS

PM Narendra Modi interacted with Group Captain Shubhanshu Shukla, the first Indian to reach the…

3 hours ago

Gautam Adani, Family Participate In Puri Rath Yatra; Launch Massive ‘Prasad Seva’ Initiative

Gautam Adani, along with his wife Priti Adani and son Karan Adani, joined thousands of…

3 hours ago

PM Modi, Leaders Pay Tribute To Former PM PV Narasimha Rao On Birth Anniversary

PM Narendra Modi on Saturday paid tribute to former Prime Minister PV Narasimha Rao on…

4 hours ago

Gautam Adani Hails Divine Experience At Rath Yatra; Praises Odisha’s Graceful Management

Gautam Adani conveyed profound spiritual emotions after witnessing the revered Rath Yatra of Lord Jagannath…

4 hours ago

Punjab’s Litchis Reach Middle East Markets In Boost To India’s Fruit Exports

In a step towards diversifying India’s horticultural exports, Punjab has successfully shipped its first consignment…

4 hours ago