HDFC Bank Update: Banking sector regulator Reserve Bank of India has allowed SBI Funds Management to buy 9.99 per cent stake of total paid-up share capital or voting rights in HDFC Bank. HDFC Bank has informed this to the stock exchanges in a regulatory filing.
SBI Funds Management had applied to the Reserve Bank of India for approval. HDFC Bank informed that RBI has given approval with certain conditions. RBI has asked SBI Funds Management to complete the process of buying this stake in HDFC Bank by 15 November 2023. Also, RBI told SBI Funds Management that in any case the same stake in HDFC Bank should be less than 10 per cent.
Actually HDFC Bank and HDFC are going to merge with each other. Recently, the bank’s Chief Financial Officer Srinivasan Vaidyanathan had said during the announcement of the January-March quarterly results that the process of merger would be completed by July 2023. Apart from RBI, approval has been received from the stock market regulator SEBI, PFRDA and Competition Commission of India and both the stock exchanges BSE and NSE for the merger.
Let us tell you that after the merger of HDFC Bank and HDFC Bank, HDFC Bank will become the largest private bank in the country with an asset of Rs 20 lakh crore. Last year in April 2022, it was decided to merge HDFC Bank and HDFC. Since then the work on the merger process is going on continuously. And approval is being taken from all the regulators. And the merger process will be completed in the April-June quarter. Earlier on Wednesday, the stock of HDFC Bank closed at Rs 1638, down 0.38 per cent.
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