HDFC Bank Group has secured approval from the Reserve Bank of India (RBI) to increase its aggregate holding in three banking entities.
This clearance from the central bank allows the group to have stakes of up to 9.5% in Kotak Mahindra Bank, UA Small Finance Bank, and Capital Small Finance Bank.
The RBI approval is valid for one year, ending on 2 January 2026.
HDFC Bank must ensure that the combined holdings of its group entities do not exceed the 9.5% threshold in the paid-up share capital or voting rights of these banks.
Under the RBI Instructions 2023, 'aggregate holding' covers ownership by the bank, related management or control entities, mutual funds, trustees, and promoter group entities.
Although HDFC Bank itself does not intend to invest directly, the approval was sought to comply with the RBI's investment limit regulations, as the group's combined investment was projected to exceed the standard 5% limit.
The application was made to the RBI on behalf of the group by HDFC Bank on 20 September 2024, in accordance with the RBI Instructions, applicable to the bank and its group entities.
This move is expected to affect the group's presence in the banking sector.
In 2022, HDFC Bank announced plans to double its network of branches within three to five years by adding 1,500-2,000 branches annually.
The plan involves opening around 1,500-2,000 locations each year.
“HDFC Bank gets Reserve Bank of India nod for increasing stake in three banks” was originally created and published by International Retail Bankerbrand owned by GlobalData.
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