RBI Grants Approval To SBI Funds Management To Acquire Up To 9.99% Stake In HDFC Bank

India's HDFC Bank (HDBK.NS) announced on Wednesday that SBI Funds Management Ltd. has been granted permission by the Reserve Bank of India to purchase up to a 9.99% stake in the private lender.

The approval has been given in connection to the application submitted by SBIFML to RBI, according to the HDFC Bank, which added that the approval is subject to a few conditions.

The RBI has "advised" SBI Funds Management, a partnership between State Bank of India (SBI.NS) and AMUNDI of France, to purchase the holding by November 15, 2023, according to HDFC Bank.

The RBI stated that, in accordance with HDFC Bank's stock exchange filing, SBI Funds Management must make sure that its overall holdings of HDFC Bank's paid-up share capital or voting rights do not exceed 10%.

Currently, AMUNDI Asset Management owns the remaining shares through its Indian subsidiary, with SBI owning the remaining 63% through SBI Funds Management.

The parent firm of HDFC Bank, Housing Development Finance Corp (HDFC.NS), and HDFC Bank are in the process of merging. By July, the acquisition is anticipated to be complete.