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“AU Small Finance Bank (SFB) has received a copy of an RBI letter dated January 3, 2025, addressed to HDFC Bank Limited, granting approval for HDFC Bank and its group entities (including HDFC Mutual Fund, HDFC Life Insurance, HDFC Pension Management, HDFC ERGO General Insurance, and HDFC Securities) to acquire up to 9.50% of AU SFB’s paid-up share capital or voting rights within one year. If the acquisition is not completed within this period, the approval will be cancelled,” the bank said in an exchange filing.
HDFC Bank has also informed the exchanges that it has received approval from the RBI to acquire up to 9.5% aggregate holding in Kotak Mahindra Bank and Capital Small Finance Bank.
The approval is valid for a period of one year from the date of RBI’s letter, i.e., till January 2, 2026.
Further, HDFC Bank needs to ensure that the “aggregate holding” by its group entities in the above-mentioned banks does not exceed 9.50% of the paid-up share capital or voting rights of the respective banks, at all times.
Under the RBI Directions 2023, “aggregate holding” includes shares held by the bank, its affiliates, mutual funds, trustees, and promoter group entities. Although HDFC Bank does not plan to invest in these banks, the group’s aggregate holding may exceed the 5% limit. Therefore, HDFC Bank applied to the RBI for approval to increase investment limits.
