HDFC AMC Permitted To Acquire Up To 9.5% In 5 Banks

HDFC Bank has officially informed the stock exchanges that its subsidiary, HDFC Asset Management Company (HDFC AMC), has received approvals from the Reserve Bank of India (RBI) through letters issued on 20 September 2023. These approvals grant HDFC AMC the authority to acquire an "aggregate holding" of up to 9.5 per cent of the paid-up share capital or voting rights in several banks, including DCB Bank, Equitas Small Finance Bank, The Federal Bank, Karur Vysya Bank, and City Union Bank.

The RBI's consent aligns with HDFC AMC's application, which adheres to the guidelines outlined in the Master Direction – Reserve Bank of India (Acquisition and Holding of Shares or Voting Rights in Banking Companies) Directions, 2023, issued on 16 January 2023. The filing specifies that the interpretation of the term "aggregate holding" will adhere to the directions provided in the aforementioned document.