The Reserve Bank of India (RBI) has granted approval to ICICI Prudential Asset Management Company (ICICI AMC) and other ICICI Group entities to increase their stake in HDFC Bank up to 9.95%, according to a regulatory filing by HDFC Bank on Wednesday.
As of February 6, ICICI Group entities collectively held a 4.07% stake in HDFC Bank, India’s largest bank by market capitalization, currently valued at around $157 billion. The approval follows an application submitted by ICICI AMC and will remain valid for a period of one year.
Under the RBI’s conditions, ICICI and its group entities must ensure that their combined shareholding does not exceed 9.95% at any time. Additionally, if the group’s holding falls below 5%, fresh approval from the central bank will be required to raise the stake back to 5% or more.
The development signals regulatory clearance for ICICI Group to expand its investment exposure in the country’s leading private sector lender, subject to compliance with prescribed ownership limits and monitoring norms.
