A big news related to hdfc bank and its group companies is coming out. Actually, hdfc and its group banks have got the approval of the reserve bank of india (RBI) to buy 9.5% stake in AU Small Finance Bank. This approval has been given by RBI on 3 january 2025. Let us tell you, hdfc bank has one year to buy this stake. If this deal is not completed within a year, then the approval will be automatically canceled.
What is the whole matter?
RBI has approved hdfc bank and its subsidiaries, such as hdfc Mutual Fund, hdfc Life Insurance, hdfc Pension Management, hdfc ERGO General Insurance and hdfc Securities to buy this stake. This stake can be up to 9.5 percent of the total paid-up share capital or voting rights of AU Small Finance Bank.
Compliance of laws is necessary
This deal will be completely subject to regulatory terms and provisions. In this deal, it is necessary to follow the rules of the banking Regulation Act, Foreign Exchange Management Act (FEMA) 1999 and Securities and Exchange Board of india (SEBI). It is also necessary to follow RBI guidelines and other legal requirements.
Big achievement for hdfc Bank
This move is an important opportunity for hdfc bank to expand its reach in the small finance banking sector. This will give hdfc bank a great opportunity to reach new customers and expand its products. Apart from this, au small finance bank will also benefit from this deal. Actually, hdfc bank and its subsidiaries already have a strong hold in the financial sector. This deal will not only provide financial stability to AU SFB but will also strengthen their business model. This deal between hdfc bank and au small finance bank can bring a big change in the indian banking sector. If this deal is completed within the regulatory conditions and time frame, then both the banks will get long term benefits from it.
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