IndusInd Bank said on Monday, February 5, that HDFC Bank has received approval from the Reserve Bank of India (RBI) to acquire up to a 9.5 per cent stake in the lender. The approval is on behalf of the HDFC Bank group, including its asset management company, a source from HDFC Bank added.

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The RBI has mandated that HDFC Bank, the country's biggest private lender by market capitalisation, acquire a major shareholding in the bank from the date of the approval, without which it would stand cancelled.

IndusInd's promoters had received the central bank's approval in November to raise their stake to 26 per cent in the bank. Both IndusInd and HDFC Bank, which reported quarterly results in January, beat profit expectations on the back of strong loan growth.