According to a company filing with the exchanges, HDFC Bank's proposal to purchase nearly 9.5% of IndusInd Bank was approved by the Reserve Bank of India (RBI) on Feb 5.
We would like to notify you in accordance with Regulation 30 of the SEBI Listing Regulations that HDFC Bank Limited, the "applicant," has been granted permission by the Reserve Bank of India ("RBI") to acquire a "aggregate holding" of up to 9.50 percent of the paid-up share capital or voting rights in IndusInd Bank Limited ("the Bank") through a letter dated February 5, 2024. IndusInd Bank stated, "The aforementioned RBI approval has been granted with reference to the application made by the applicant to the RBI."
In addition to granting approval, the RBI made it clear that the approval would be revoked if the HDFC Bank did not acquire a significant portion of the shares within a year of the date of the aforementioned RBI letter.
The applicant, HDFC Bank, has also been instructed by the central bank to make sure that, at all times, the "aggregate holding" in the bank does not surpass 9.5% of the bank's paid-up share capital or voting rights."If the “aggregate holding” falls below 5 per cent, prior approval of the RBI will be required to increase it to 5 per cent or more of the paid-up share capital or voting rights of the Bank," according to the statement released by IndusInd Bank.
