HDFC gets RBI nod to hike stake in IndusInd Bank to 9.5%
HDFC Bank clarified that it does not intend to invest directly in IndusInd Bank.
“As mentioned in the stock exchange intimation, approval from RBI for increasing the investment in IndusInd Bank from 5% to 9.5% was made by HDFC Bank being the banking entity regulated by RBI (on behalf of its group companies); however, HDFC Bank does not intend to make any investment in IndusInd Bank,” a spokesperson said.The proposed investments will be made by HDFC Bank’s group companies, as specifically listed in the exchange filing.
“These investments would be made by the respective companies in their normal course of business and from the open market,” the spokesperson added.According to sources, the RBI approval is primarily meant to facilitate portfolio investments by HDFC group entities, mainly its mutual fund and insurance arms.
Market participants view the holding as financial rather than strategic, with RBI norms and concentration limits making a takeover-style transaction unlikely.The approval allows HDFC Bank, as the sponsor and promoter of its broader financial services group, to hold up to 9.5% of IndusInd Bank’s paid-up share capital or voting rights on an aggregate basis.
