HDFC AMC receives RBI approval to acquire up to 9.5% stake in Karur Vysya Bank

September 21, 2023

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.

In an exchange filing, Karur Vysya Bank said, “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. The approval has been granted with reference to the application made by HDFC AMC to RBI.”

However, it said that HDFC AMC must ensure that the aggregate holding in Karur Vysya Bank doesn’t not exceed 9.5 per cent of the paid-up share capital. Further, the company, it added, would require prior approval from RBI to reduce the shareholding below 5 per cent.

In a separate filing, DCB Bank said, “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 further added that the 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 stipulated period, the approval granted by the RBI shall stand cancelled,” it said.