HDFC Bank on Monday said it will acquire a “20% or more stake” in Griha Pte, a wholly-owned subsidiary of HDFC Investments, as it has received regulatory clearance from the Monetary Authority of Singapore (MAS).

Founded in 2012, Griha Pte is a private equity fund manager headquartered in Singapore and registered with MAS. The entity is a foreign step-down subsidiary of the Housing Development Finance Corporation (HDFC).

“Monetary Authority of Singapore (MAS) vide its e-mail dated April 24, 2023 to Griha Pte, has granted its approval for acquisition of shares in Griha Pte. by HDFC Bank, which would result in HDFC Bank – (i) acquiring or holding, directly or indirectly, 20% or more of the issued share capital of Griha Pte.; or (ii) controlling, directly or indirectly, 20% or more of Griha Pte," HDFC Bank said in a regulatory filing.

 The announcement comes three days after HDFC Bank said it has received permission from the Reserve Bank of India (RBI) to increase stake in HDFC Life and HDFC ERGO to more than 50%.

 Last year in April, HDFC Bank and mortgage financier parent HDFC announced a merger proposal in a deal valued at about $40 billion. The proposed entity would have a combined asset base of Rs 18 lakh crore.

 The merger is expected to come into effect by July this year after getting all the regulatory approvals.