RBI has agreed to let LIC buy 9.99% stake in HDFC Bank, India’s largest private sector bank.
HDFC Bank on Thursday announced that the Reserve Bank of India (RBI) has authorized the Life Insurance Corporation (LIC) of India to acquire 9.99 per cent stake in the company.
“RBI has advised LIC to acquire the said major stake of the bank within one year, i.e. before January 24, 2025,” the bank said in the regulatory filing.
Pursuant to Regulation 30 of the SEBI Listing Rules, we would like to inform you that the Reserve Bank of India (RBI), vide its letter dated January 25, 2024 to the Life Insurance Corporation of India (LIC ), licensed to LIC. . to acquire total shares amounting to 9.99% of the paid-up share capital or voting rights of HDFC Bank Limited,” the bank added in its regulatory filing.
LIC currently holds 5.19% stake in HDFC Bank. The insurance giant had earlier sent a request to the RBI to increase its stake in the bank.
RBI has advised LIC to acquire majority stake in HDFC Bank within one year, i.e. before January 24, 2025. Further, LIC must also ensure that the shareholding n does not exceed 9.99 % of contributed capital or voting rights. from the bank at any time.
HDFC Bank shares are facing difficulties in the market
This development comes as HDFC Bank shares are attempting to regain their former potential in the Indian stock market, after witnessing a significant decline due to the company’s quarterly results. This private lending institution.
HDFC Bank shares closed down 1.4 per cent at ₹1,440.70 on Thursday. The private bank’s shares took a hit after the release of its third-quarter results, which showed a modest profit for the quarter ending December 2023.
A day after the quarterly results were announced, HDFC Bank shares fell 9%, while shares listed on the US market fell about 10% on January 17.
HDFC Bank reported a 2.65% rise in consolidated net profit of ₹17,258 crore in its third quarter results, compared to ₹16,811 crore reported in the quarter ended September 2023.
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