LIC’s Major Move Shakes Up HDFC Bank! RBI Greenlights 9.99% Stake – Find Out the Impact on Shares and Profits!

In a regulatory filing on Thursday, HDFC Bank revealed that the Reserve Bank of India (RBI) has sanctioned Life Insurance Corporation (LIC) to acquire a 9.99% stake in the private sector financial institution.

According to the bank’s filing, the RBI, in a letter dated January 25, 2024, addressed to LIC, granted approval for the acquisition of an aggregate holding of up to 9.99% of the paid-up share capital or voting rights of HDFC Bank Limited. The approval, based on LIC’s application to the central bank, is contingent upon compliance with various regulations, including those outlined in the Banking Regulation Act, 1949, the RBI’s Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated January 16, 2023, and provisions of the Foreign Exchange Management Act, 1999.

Also read : Musical Maestro Ilaiyaraaja’s Daughter Bhavatharini’s Shocking Cancer Battle Ends in Sri Lanka.

The RBI has advised LIC to complete the acquisition of the significant shareholding in HDFC Bank within one year, by January 24, 2025. LIC is also instructed to ensure that its aggregate holding in the bank does not exceed 9.99% of the paid-up share capital or voting rights at any given time.

On the financial front, HDFC Bank’s shares closed 1.4% lower on Thursday, with the broader NSE Nifty down by 0.5%. In the October-December period, the bank reported a 2.65% rise in consolidated net profit, reaching ₹17,258 crore compared to ₹16,811 crore in the preceding quarter.

Despite a 1.4% decline in shares, HDFC Bank’s core net interest income grew to ₹28,470 crore, with other income standing at ₹11,140 crore for the quarter. Additionally, the bank witnessed an improvement in asset quality, with the gross non-performing assets ratio at 1.26%, down from 1.34% in the quarter-ago period.

Also Read : Tata Technologies Q3 Reports : 1.9% Sequential Revenue Growth and 6.1% Increase in Net Profit

A report by Motilal Oswal Research characterized HDFC Bank’s performance in the October-December period as a “mixed quarter.” The bank’s net profit on a standalone basis for the same period amounted to ₹16,372 crore, up from ₹15,976 crore in the previous quarter.

You May Also Like

More From Author

4Comments

Add yours

+ Leave a Comment