HDFC Bank Gets Green signal for AU Small Finance Buy

The Reserve Bank of India (RBI) has approved HDFC Bank’s plan to buy up to a 9.5% stake in AU Small Finance Bank. This approval is valid for one year from January 3, 2025. HDFC Bank and its group companies, including HDFC Mutual Fund, HDFC Life Insurance, HDFC Pension Management, HDFC ERGO General Insurance, and HDFC Securities, can collectively purchase up to 9.5% of AU Small Finance Bank’s paid-up share capital or voting rights.

If HDFC Bank doesn’t complete the acquisition within this timeframe, the approval will expire. The RBI also approved HDFC Bank’s plan to acquire up to a 9.5% stake in Kotak Mahindra Bank and Capital Small Finance Bank. However, the combined ownership by HDFC Bank’s group entities in these banks must not exceed 9.5% at any time.

On January 3, 2025, HDFC Bank shares fell by 2.5% to close at Rs 1,749 due to a broad-based selloff. Trading volumes were high, with 1 crore shares changing hands, higher than the one-month and one-week average.