RBI approves HDFC Bank to acquire 9.5% stake in AU Small Finance Bank
New Delhi| The Reserve Bank of India (RBI) has approved HDFC Bank to acquire a maximum 9.50% stake in AU Small Finance Bank. However, the central bank has stipulated that if the deal is not done within a year from the date of the approval letter, the approval will be cancelled.
AU Small Finance Bank (SFB) received a letter from RBI dated January 3, 2025, addressed to HDFC Bank Limited. The letter approved HDFC Bank and its group entities (including HDFC Mutual Fund, HDFC Life Insurance, HDFC Pension Management, HDFC ERGO General Insurance and HDFC Securities) to acquire up to 9.50% of AU SFB’s paid-up share capital or voting rights within one year.
HDFC Bank has also told the exchange that it has received RBI approval to buy 9.5% stake in Kotak Mahindra Bank and AU Small Finance Bank. This approval is valid for one year after the issue of RBI approval letter. Its validity will expire on 02 January 2026.
