RBI allows HDFC Bank to acquire up to 9.5% stake in Yes Bank

The Reserve Bank of India (RBI) has granted approval to HDFC Bank for the acquisition of up to 9.5 per cent stake in Yes Bank, the company said in an exchanges filing.

"We wish to inform you that YES Bank Limited (“the Bank”) has received an intimation from the Reserve Bank of India (“RBI”) dated February 5, 2024, that it has accorded its approval to HDFC Bank Limited (“Applicant”) for acquiring aggregate holding of up to 9.50% of the paid-up share capital or voting rights of the Bank," Yes Bank said in the filing.

The RBI's approval comes after a thorough evaluation of the proposal, considering regulatory compliance and market dynamics.

"The aforesaid approval granted by RBI is subject to the compliance with the relevant provisions of the Banking Regulation Act, 1949, RBI’s Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated January 16, 2023 (as amended from time to time), provisions of the Foreign Exchange Management Act, 1999, regulations issued by Securities and Exchange Board of India, and any other statutes, regulations and guidelines, as applicable," the company press release stated.

This comes after HDFC Bank on Tuesday issued a clarification, saying that the RBI approval for acquiring up to 9.5% stake in another private lender IndusInd Bank does not apply to HDFC Bank itself but rather to the HDFC Bank Group, reported ET Now, citing sources.