Mumbai, Oct 11 (IANS): The RBI on Wednesday gave the go-ahead to SBI Mutual Fund (SBIMF) for acquiring up to 9.99 per cent of paid-up share capital in Induslnd Bank.

"The approval has been granted with reference to the application made by SBI MF to RBI," IndusInd Bank informed the stock exchanges. This acquisition will also give SBI MF the right to 9.99 per cent voting rights in the bank.

"SBI MF has been advised by RBI to acquire the aforesaid major shareholding in the bank within a period of one year i.e. by October 10, 2024," the exchange filing added.

The RBI said that the approval also requires 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.

IndusInd Bank had reported a robust financial performance in the first quarter of 2023-24, with its net profit rising 32 per cent to Rs 2,124 crore, up from Rs 1,603.29 crore in the same quarter of the previous year.

Earlier, in May, the RBI gave its nod to SBI Funds Management (SBIFML) -- a joint venture between State Bank of India and France's AMUNDI -- to acquire 9.99 percent stake in HDFC Bank and had recommended the company to do so within six months.