India cenbank clears SBI Funds to buy up to 9.99% stake in HDFC Bank

Housing Development Finance

17/05/2023 13:47

MUMBAI, May 17 (Reuters) - India's HDFC Bank  HDBK.NS 
said on Wednesday that the Reserve Bank of India had allowed SBI
Funds Management Ltd to acquire a stake of up to 9.99% in the
private lender.
    The RBI has "advised" SBI Funds Management—a joint venture
between State Bank of India  SBI.NS  and France's AMUNDI—to
acquire the stake by Nov. 15, 2023, HDFC Bank said.
    SBI Funds Management must ensure that its aggregate holding
remains below 10% of the paid-up share capital or voting rights
of HDFC Bank, the RBI said, as per HDFC Bank's stock exchange
filing.
    SBI currently holds a 63% stake in SBI Funds Management,
while AMUNDI Asset Management holds the rest through its Indian
subsidiary.
    HDFC Bank is in the process of merging with its parent
company Housing Development Finance Corp  HDFC.NS . The merger
is expected to conclude by July.

 (Reporting by Siddhi Nayak; Editing by Savio D'Souza)
 ((Siddhi.Nayak@thomsonreuters.com; +91 22 6921 7848;))