RBI allows SBI Funds Management Ltd to acquire up to 9.99% in HDFC Bank Ltd

The Reserve Bank of India ("RBI") vide its letter dated May 16, 2023 addressed to SBI Funds Management Limited ("SBIFML"), has accorded its approval to SBIFML for acquiring up to 9.99% of the paid-up share capital or voting rights of HDFC Bank Limited ("the Bank").The approval has been granted with reference to the application made by SBIFML to RBI.

The aforesaid approval granted by RBI is subject to the conditions mentioned therein including compliance with the relevant provisions of the Banking Regulation Act, 1949, RBI's Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated January 16, 2023 (as amended from time to time), provisions of the Foreign Exchange Management Act, 1999, provisions of the regulations issued by Securities and Exchange Board of India, and any other guidelines, regulations and statutes as applicable.

SBIFML has been advised by RBI to acquire the aforesaid major shareholding in the Bank within a period of six months i.e. by November 15, 2023. Further, SBIFML must ensure that the aggregate holding in the Bank remains below 10% of the paid-up share capital or voting rights of the Bank at all times.

Shares of HDFC Bank Limited was last trading in BSE at Rs. 1646.75 as compared to the previous close of Rs. 1676.20. The total number of shares traded during the day was 166208 in over 12535 trades.

The stock hit an intraday high of Rs. 1673.70 and intraday low of 1644.10. The net turnover during the day was Rs. 274978649.00.

Source : Equity Bulls

Keywords

HDFCBank INE040A01034 RBI Approval SBIFundsManagement