Mumbai, Feb 6 (IANS): The Reserve Bank of India (RBI) has approved HDFC Bank's proposal to acquire an up to 9.5 per cent stake in IndusInd Bank.

"Pursuant to Regulation 30 of the SEBI Listing Regulations, we would like to inform you that the Reserve Bank of India vide its letter dated February 5, 2024 has accorded its approval to HDFC Bank Limited (“applicant”) for acquiring “aggregate holding” of up to 9.50 per cent of the paid-up share capital or voting rights in IndusInd Bank Limited. The aforesaid RBI approval has been granted with reference to the application made by the applicant to the RBI," IndusInd Bank said in a stock exchange filing.

The approval also stipulates that if the "aggregate holding" of HDFC Bank falls below 5 per cent, prior approval of the RBI will be required to increase it to 5 per cent or more of the paid-up share capital or voting rights.

The RBI approval is subject to compliance with 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), provisions of the Foreign Exchange Management Act, 1999, regulations by the Securities and Exchange Board of India (SEBI), and other applicable statutes, regulations, and guidelines, the filing noted.