HDFC AMC Receives RBI Nod To Acquire Up To 9.5% Stake In Karur Vysya Bank, DCB Bank

HDFC Asset Management Company received approval from the Reserve Bank of India (RBI) to acquire additional holdings of up to 9.5 per cent in Karur Vysya Bank and DCB Bank, the banks said in a regulatory filing.

“Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, we advised that the Reserve Bank of India vide its letter dated September 20, 2023, has accorded its approval to HDFC Asset Management Company Ltd. (HDFC AMC) for acquiring aggregate holding of up to 9.5 per cent of the paid-up share capital or voting rights of The Karur Vysya Bank Ltd,” Karur Vysya Bank said in a regulatory filing.

HDFC AMC must ensure that the aggregate holding in the Bank does not exceed 9.5 per cent of the paid-up share capital or voting rights of the Bank at all times. Further if the aggregate holding falls below 5 per cent, prior approval of RBI will be required to increase it to 5 per cent or more of the paid-up share capital or voting rights of the Bank, the bank said in the regulatory filing.

After the RBI’s approval, the stock of Karur Vysya Bank is also up by 1.57 per cent, or Rs 2.10, at Rs 135.85, on BSE on Thursday morning.

In a separate filing, DCB Bank informed the exchanges that RBI has accorded its approval to HDFC AMC to acquire up to 9.5 per cent of the paid-up share capital or voting rights of the Bank.

“We would like to inform you that the Bank has received an intimation from RBI on September 20, 2023, that it has accorded its approval to HDFC Asset Management Company Limited (“AMC”) to acquire aggregate holding of up to 9.5 per cent of the paid-up share capital or voting rights of the Bank,” DCB Bank informed the exchanges.

The central bank has advised HDFC AMC to acquire a stake in the Bank within 1 year from the approval date.

AMC has been advised by the RBI to acquire the aforesaid major shareholding in the Bank within a period of one year from the date of approval. If AMC fails to acquire major shareholding within the stipulated period, the approval granted by the RBI shall stand cancelled. Further, AMC must ensure that the aggregate holding in the Bank does not exceed 9.5 per cent of the paid-up share capital or voting rights of the Bank at all times, it added.

After the development, the shares of DCB are soaring 3.47 per cent higher, or Rs 4.30, at Rs 128.35, in morning deals on Thursday.