New Delhi :
The Indian Bank Authority said it’s okay for HDFC Bank Group to buy 9.50 percent of IndusInd Bank, Yes Bank, ICICI Bank, Axis Bank, Bandhan Bank, and Suryoday Small Finance Bank.
The HDFC Bank Group’s Asset Management Company,
HDFC Life Insurance Company, and HDFC Ergo plan to invest to own a part of these banks, as shared by the group with the stock market.
Conditions imposed by the Reserve Bank
The bank gave the group one year. If the group doesn’t finish the deals in this time, the permission will be canceled.
Additionally, the central bank has a rule for HDFC. They can’t own more than 9.5 percent of IndusInd Bank.
Also, if the group’s ownership in IndusInd and Yes Bank is 5 percent or less, and later HDFC Bank Group wants to increase it to 9.5 percent, they must ask the RBI for permission.
They need to get approval again.
The bank said HDFC Bank Group can own more of these banks under the Banking Act from 1949.
Also, other rules like FEMA, SEBI, and some more will apply.
Share holding pattern of IndusInd Bank and Yes Bank-
As per the Money Control report, the owners, IndusInd International Holding Limited and IndusInd Limited, together own 16.45 percent of the bank.
As of December 2023, mutual funds own 15.63 percent of the bank. Life Insurance Corporation of India has a 7.04 percent stake, and foreign investors have the largest share at 38.24 percent.
At Yes Bank, everyone in the public owns all the shares, and a group from SBI owns 37.23 percent.
LIC has 4.34 percent, and also, ICICI Bank has 3.43 percent, and Axis Bank has 2.57 percent.
