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RBI allows HDFC AMC's stake acquisition in DCB Bank, Karur Vysya, 2 others

Federal Bank, Karur Vysya have to ensure that acquisition does not exceed 9.5% of their paid-up share capital

RBI, Reserve Bank of India

Photo: Bloomberg

Aathira Varier Mumbai

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The Reserve Bank of India (RBI) has approved HDFC Asset Management Company (HDFC AMC) acquiring a 9.5 per cent stake each in DCB Bank, Karur Vysya Bank, Federal Bank and Equitas Small Finance Bank.

“Pursuant to Regulation 30 and other applicable clauses of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we would like to inform you that the Bank has received an intimation from RBI on September 20, 2023, regarding the approval granted to M/s. HDFC Asset Management Company Limited (“HDFC”) to acquire “aggregate holding” of up to 9.5% of the paid-up equity capital or voting rights in ESFBL,” said the small finance bank in an exchange filing on Thursday,

Separately, an exchange statement by DCB Bank late Wednesday said: “AMC has been advised by the RBI to acquire the aforesaid major shareholding in the Bank within a period of one year from the date of approval. If AMC fails to acquire major shareholding within a stipulated period, the approval granted by the RBI shall stand cancelled. Further, AMC must ensure that the aggregate holding in the Bank does not exceed 9.5% of the paid-up share capital or voting rights of the Bank at all times.”

Federal Bank and Karur Vysya must ensure that the stake acquisition does not exceed 9.5 per cent of their paid-up share capital or voting rights at all times. “Further if the aggregate holding falls below 5%, prior approval of RBI will be required to increase it to 5% or more of the paid-up share capital or voting rights of the Bank,” said Federal Bank and Karur Vysya in exchange filings on Thursday.

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First Published: Sep 21 2023 | 2:23 PM IST

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