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India's HDFC Bank subsidiaries get nod to buy up to 9.5% stake in IndusInd Bank
HDFC Bank subsidiaries can acquire up to 9.5% stake in IndusInd Bank after RBI approval, supporting strategic investment amid sector scrutiny and share-price weakness.
- RBI has authorised HDFC Bank's subsidiaries to acquire a stake in IndusInd Bank, subject to conditions and limits that require fresh clearance for any further increases.
- IndusInd Bank has been under investor scrutiny in recent months after sharp share-price volatility tied to concerns about losses and lapses in disclosures, while HDFC Bank sees the purchase as a way to deploy capital for medium-to-long-term strategic and financial returns.
- IndusInd is described as a mid-sized private lender specialising in vehicle finance, corporate banking and retail lending, with parts of its loan book showing higher-than-expected stress that weighed on profitability while it strengthens controls and disclosures.
- The timing coincides with broader regulatory scrutiny and consolidation talk in the banking sector, and shares of both banks are expected to remain in focus as markets assess impacts on governance, capital plans and investor confidence.
- The move could steer consolidation and capital-allocation trends among big banks, and analysts view HDFC Bank's investment as a vote of confidence in IndusInd Bank's fundamentals and governance oversight.
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India's HDFC Bank subsidiaries get nod to buy up to 9.5% stake in IndusInd Bank
India's central bank has approved HDFC Bank's subsidiaries to acquire up to a 9.5% stake in smaller peer IndusInd Bank , the country's largest private sector lender by market value said late on Monday.
·United Kingdom
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HDFC Bank group gets RBI nod to acquire up to 9.5% stake in IndusInd Bank
HDFC Bank emphasized that it does not plan to make a direct investment. The approval was sought because the cumulative holdings of its group companies were expected to exceed the previous regulatory cap of 5%.
·New Delhi, India
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HDFC Bank gets RBI nod to raise holding in IndusInd Bank up to 9.5% - The Tribune
HDFC Bank has received approval from the Reserve Bank of India (RBI) to allow its group entities to collectively hold up to 9.50 per cent stake in IndusInd Bank, the bank informed the stock exchange in a filing.
·Chandigarh, India
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Total News Sources13
Leaning Left1Leaning Right4Center2Last UpdatedBias Distribution57% Right
Bias Distribution
- 57% of the sources lean Right
57% Right
14%
C 29%
R 57%
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