HDFC Bank To Acquire Stake In These Three Banks; RBI Gives Nod - Details

The Reserve Bank of India ( RBI ) has granted HDFC Bank Group approval to acquire an aggregate holding of up to 9.50% in the share capital or voting rights of Kotak Mahindra Bank Limited, AU Small Finance Bank Limited, and Capital Small Finance Bank Limited. According to the announcement made on January 3, 2025, this approval is valid for a year, ending on January 2, 2026.

‘RBI vide its letters dated January 3, 2025, has given its approval to HDFC Bank Limited (being promoter / sponsor of its group entities viz HDFC Mutual Fund, HDFC Life Insurance Company Limited, HDFC ERGO General Insurance Company Limited, HDFC Pension Fund Management Limited and others) to acquire “aggregate holding” of up to 9.50%,’ as mentioned in the exchange filing by the company. 

HDFC Bank had sought this permission to comply with the RBI Directions, 2023, which define aggregate holding as shareholding by entities under the same management or promoter group. Notably, HDFC Bank itself does not intend to invest directly in these banks. The application was made to the RBI on September 20, 2024, on behalf of the group entities.

A Look at the Beneficiaries
The three banks – Kotak Mahindra Bank, AU Small Finance Bank, and Capital Small Finance Bank – stand to gain from the influx of strategic investments. 

HDFC Bank Share Price Today 
On January 3rd, the stock closed at 1,749.30, marking a decline of 2.46%. The day’s trading saw an opening at 1,794.80, with a high of 1,794.80 and a low of 1,746.40. The company's market capitalization stands at Rs 13,37,919.84 crore.

HDFC Bank Share Price History 
Looking at its historical performance, the stock has appreciated by 262.56% over the past 10 years and by 37.95% over the last 5 years. In the short term, it gained 4.57% over the past week but has seen a decline of 1.08% in the last 6 months. Over the past month, the stock fell by 4.25%, and in the last week, it dropped by 2.70%.