HDFC Bank, the largest private sector bank, has secured a significant approval from the Reserve Bank of India (RBI) to acquire a stake in six banks, including Yes Bank, IndusInd Bank, Axis Bank, Bandhan Bank, ICICI Bank, and Suryoday Small Finance Bank.
The proposal, seeking a 9.50 percent stake in these banks, has received the green light from RBI, strengthening HDFC Bank’s position in the banking sector.
This move comes after HDFC Bank merged two of its businesses, further solidifying its influence in the banking industry.
The RBI’s approval applies to HDFC Group, the parent group of HDFC Bank, and includes its asset management company.
The approval is valid for one year, with the condition that HDFC Group must complete the acquisition within this timeframe; otherwise, the approval will be revoked.
While ensuring the acquisition aligns with regulations, RBI has stipulated that HDFC must acquire the stake in the form of paid-up share capital or aggregate holding of voting rights.
Although crucial for HDFC Bank, customers of IndusInd Bank, Yes Bank, and the other involved banks need not worry about any impact on their banking services.
The functioning of the banks, services, and customer experience will remain unaffected, providing continuity in banking operations.