HDFC Bank Group Gets RBI Nod To Acquire Up To 9.5% Stakes In Yes Bank, IndusInd And Four Others

HDFC Bank Group has received Reserve Bank of India's approval to acquire an aggregate holding of up to 9.5% each in six banks.

The RBI, while granting the above-referred approval, has also conveyed that if the applicant fails to acquire a major shareholding within a period of one year from the date of the aforesaid RBI letter, the approval shall stand cancelled.

Further, the applicant shall ensure that the “aggregate holding” in the bank does not exceed 9.50% of the paid-up share capital or voting rights of the bank at all times.

If the aggregate holding falls below 5%, prior approval from the RBI will be required to increase it to 5% or more of the paid-up share capital or voting rights of the bank.

Shares of HDFC Bank fell as much as 0.58%. It is trading 0.36% lower at Rs 1,439.65 as of 9:33 p.m. This compares to a 0.09% advance in the NSE Nifty 50.

Of the 50 analysts tracking the company, 45 maintain a 'buy', and five recommends a 'hold', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 34.7%.