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The Reserve Bank of India (RBI) has given SBI Fund Management (SBIFML), a joint venture between SBI and France’s AMUNDI, a permission to buy up to 9.99% stake in HDFC Bank. RBI has also directed that the buyout of stake should be done in the next 6 months.
SBIFML had submitted an application to RBI, for which they have now received approval, as per HDFC Bank, which also puts forward a few conditions.
The RBI has recommended SBIFML to purchase the aforementioned stake in HDFC Bank within six months, or by November 15, 2023.
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Another condition kept by RBI is that SBIFML must make sure that their total stake in HDFC Bank can never exceed 10% of the bank’s paid-up share capital or voting rights, as per the statement by HDFC Bank.
SBI now owns 63% of SBI Funds Management, and AMUNDI Asset Management, through his Indian subsidiary, owns the remaining 73%.
HDFC Bank is getting merged with Housing Development Finance Corporation Ltd, which is expected to be completed by July, 2023. Its shares ended at Rs 1,638.65 apiece on BSE, down 0.49%.
