85 breached
The Indian rupee has breached the significant psychological barrier of 85 against the US dollar, marking an all-time low amid a confluence of domestic and global pressures.
In a significant development, the HDFC Bank Group on Tuesday announced that it has received the Reserve Bank of India’s (RBI) approval to acquire “aggregate holding” of up to 9.5 per cent of the paid-up share capital or voting rights in six banks.
These banks include Axis Bank, Survoday Small Finance Bank, ICICI Bank, Bandhan Bank, YES Bank and IndusInd Bank.
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“The approvals were granted pursuant to applications made by HDFC Bank (as a promoter/sponsor of the Group) to RBI on December 18, 2023,” the Bank said in a regulatory filing.
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“RBI’s approval is valid for a period of one year from the date of RBI’s letter, ie, till February 4, 2025. Further, HDFC Bank shall ensure that the ‘aggregate holding’ in the above-mentioned banks does not exceed 9.50 per cent of the paid‐up share capital or voting rights of the respective banks, at all times,” it added.
The bank said it does not intend to invest in these banks but as the holding was likely to exceed 5 per cent under the RBI rules, it made an application to increase the investment limits.
“Further, since the RBI Directions is applicable to HDFC Bank, the Bank had made the application to RBI on behalf of the Group,” it added.
These banks have also given the information on the development in separate filings.
“The RBI, while granting the above-referred approval, has also conveyed that if the applicant fails to acquire major shareholding within a period of one year from the date of the aforesaid RBI letter, the approval shall stand cancelled,” they said.
The HDFC Group includes HDFC Bank, HDFC Mutual Fund, HDFC Life Insurance Company Limited, HDFC ERGO General Insurance Company Limited and others.
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