HDFC Bank Ltd.

The Reserve Bank of India (RBI) has given its approval to HDFC Bank (being promoter / sponsor of its group entities viz HDFC Mutual Fund, HDFC Life Insurance Company, HDFC ERGO General Insurance Company, HDFC Pension Fund Management and others) to acquire aggregate holding of up to 9.50% of the share capital or voting rights in the three banks viz. Kotak Mahindra Bank, AU Small Finance Bank and Capital Small Finance Bank. 

The said 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.

As per the Reserve Bank of India (Acquisition and Holding of Shares or Voting Rights in Banking Companies) Directions, 2023 (RBI Directions), ‘aggregate holding’ includes shareholding by the Bank, entities under the same management/ control, mutual funds, trustees, promoter group entities, etc. In view of the same, whilst HDFC Bank does not intend to invest in these banks, since the aggregate holding of HDFC Bank group entities is likely to exceed the prescribed limit of 5%, an application seeking approval of RBI for increase in investment limits was made. Further, since the RBI Directions is applicable to HDFC Bank, the Bank had made the application to RBI on behalf of the Group, on September 20, 2024.

HDFC Bank is one of India’s premier banks providing a widerange of financial products and services using multiple distribution channels including a pan-India network of branches, ATMs, phone banking, net banking and mobile banking.