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RBI Allows HDFC Bank Group to Acquire Stakes in ICICI Bank, AXIS Bank, YES Bank


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The Reserve Bank of India (RBI) has given permission to HDFC Bank Group to acquire up to 9.50 percent stakes in several banks.

Approval Details

The approval is for investments made by HDFC Asset Management Company (AMC), HDFC Ergo, and HDFC Life Insurance. This approval lasts for one year. If HDFC Bank doesn’t acquire the shares within this time, the approval is canceled.

Regulatory Compliance

The RBI’s approval is subject to following various laws and regulations, such as the Banking Regulation Act, FEMA, SEBI regulations, and more.

Specific Conditions for IndusInd Bank

HDFC Bank’s ownership in IndusInd Bank must not exceed 9.50 percent of the bank’s share capital or voting rights. If it falls below 5 percent, RBI’s approval is needed to increase it.

Shareholding Pattern

  • IndusInd Bank: Promoters hold 16.45 percent, mutual funds hold 15.63 percent, insurance companies hold 7.04 percent, and foreign investors hold 38.24 percent.
  • Yes Bank: Public holds 100 percent. LIC holds 4.34 percent, and a consortium led by SBI holds 37.23 percent.
  • ICICI Bank and Axis Bank: HDFC AMC holds 3.43 percent in ICICI Bank and 2.57 percent in Axis Bank.

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