The Reserve Bank of India (RBI) has approved life insurance corporation of India to buy 9.99 per cent stake in HDFC Bank, India’s largest private bank. The RBI informed the stock exchanges about the approval.
HDFC Bank said rbi has given LIC the above-mentioned 9 in the bank over a period of one year i.e. up to January 24, 2025.It has been allowed to acquire a 99% stake. Further, LIC should ensure that their total stake in the bank does not exceed 9.99 per cent of the bank’s paid-up share capital or voting rights, HDFC Bank said.
The RBI informed the LIC of its decision in a letter dated January 25. Under this, LIC HDFC Bank’s paid-up share capital is 9.It can win 99 percent or the right to vote.
This is likely to be positive news for HDFC Bank shareholders. Shares of HDFC Bank have been selling strongly in the stock market. Shares hit a 52-week low after the bank’s third-quarter data.
Srinivasan Vaidyanathan, chief financial officer of HDFC Bank, said the bank’s growth is likely to be good as its bad loans have come down significantly.
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