On Monday, February 5th, IndusInd Bank announced that HDFC Bank has secured approval from the Reserve Bank of India (RBI) to acquire a stake of up to 9.5% in the former. This approval extends to the HDFC Bank group, encompassing its asset management company, as confirmed by a source from HDFC Bank.
The RBI's stipulation mandates that HDFC Bank, being the largest private lender in India by market capitalization, must acquire a significant shareholding in IndusInd Bank from the date of approval. Failure to comply with this requirement would result in the cancellation of the approval.
In a parallel development, IndusInd Bank's promoters had previously obtained approval from the central bank in November to increase their stake in the bank to 26%.
Both IndusInd Bank and HDFC Bank reported quarterly results in January, surpassing profit expectations attributed to robust loan growth.
(With Agency Inputs)