India's insurance regulator approves transfer of HDFC Life shares to HDFC Bank (updated)

Housing Development Finance

23/06/2023 15:37

(Adds background on merger, details on stakes)
       BENGALURU, June 23 (Reuters) - 
    An Indian regulator has approved HDFC Ltd's  HDFC.NS  move
to transfer its near 49% stake in its life insurance unit to
HDFC Bank  HDBK.NS , clearing a key step ahead of their merger.
    HDFC announced a $40 billion deal last year to merge with
the top private lender. As part of the transaction, which is set
to close next month, HDFC Ltd was required to transfer its units
to HDFC Bank.
    The Insurance Regulatory and Development Authority of India
has also allowed HDFC Ltd to raise its stake in HDFC Life to
more than 50%. 
        Post-merger, HDFC Bank will have a majority stake in the
insurer, allowing the bank to show it as a subsidiary and
consolidate its earnings.
  

 (Reporting by Chris Thomas in Bengaluru; Editing by Anil
D'Silva)
 ((chris.thomas@thomsonreuters.com; +91 80 6210 0487;))