NEWS
ICICI Pru gets RBI nod to raise stake in HDFC Bank to 9.95%
RBI’s approval is valid for one year; ICICI group entities currently hold 4.07% stake in HDFC Bank.
RBI’s approval is valid for one year; ICICI group entities currently hold 4.07% stake in HDFC Bank.
The Reserve Bank of India (RBI) has given approval to ICICI Prudential Asset Management Co, along with other ICICI group entities, to increase their stake in HDFC Bank up to 9.95%.
The ICICI group entities hold a 4.07% stake in India's largest private sector lender. HDFC Bank has a market valuation of around $157 billion.
The RBI’s nod is valid for one year.
ICICI and its group entities must also ensure their holding in HDFC Bank does not exceed 9.95% at all times.
If ICICI group's stake in HDFC Bank falls below 5%, it will need prior RBI approval to increase the shareholding to 5% or more.
The Banking Regulation Act restricts any single entity's voting rights to a maximum of 26% in any bank.
As of end-December, foreign investors own 47.67% stake in HDFC Bank, followed by domestic mutual funds (26.66%), retail investors (9.41%) and insurance companies (7.18%).
