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HDFC Gets RBI Approval to Acquire Stakes in Kotak, AU, and Capital SFBs

2025-01-09

HDFC Bank, India's largest private sector lender, has received approval from the Reserve Bank of India (RBI) to acquire up to 9.5% aggregate stake in Kotak Mahindra Bank, AU Small Finance Bank, and Capital Small Finance Bank.

An exchange filing issued by HDFC Bank revealed that the RBI's approval is valid until January 2, 2026.

The approval allows HDFC Bank to acquire up to 9.5% of the share capital or voting rights in the three banks, the filing stated.

HDFC Bank clarified that while it does not plan to invest directly in these banks, the approval will enable its group entities—HDFC Mutual Fund, HDFC Life Insurance, HDFC ERGO General Insurance, and HDFC Pension Fund Management—to increase their investment limits.

The lender also mentioned that it would ensure that its group entities do not exceed the 9.5% investment cap.