Which of the following statement/statements is/are CORRECT regarding HDFC Bank Group's approval to acquire stakes in various banks?

1. The Reserve Bank of India has allowed HDFC Bank Group to acquire up to 9.50 percent stakes in IndusInd Bank, Yes Bank, Axis Bank, ICICI Bank, Suryoday Small Finance Bank, and Bandhan Bank.

2. The approval is intended for investments by HDFC Asset Management Company (AMC), HDFC Ergo, and HDFC Life Insurance.

3. The RBI approval is valid for an indefinite period, allowing HDFC Bank to acquire the shareholding at its own pace.

Solution

•     The Reserve Bank of India has allowed HDFC Bank Group to acquire up to 9.50 percent stakes in IndusInd Bank, Yes Bank, Axis Bank, ICICI Bank, Suryoday Small Finance Bank and Bandhan Bank. •     The approval for acquiring the stakes is intended for investments by HDFC Asset Management Company (AMC), HDFC Ergo and HDFC Life Insurance, said the bank in an exchange filing. •     The approval is valid for one year and if HDFC Bank fails to acquire the shareholding within that period, the approval stands cancelled. •     The RBI approval is subject to 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, FEMA, Sebi regulations and other regulations applicable. Learn Along: About RBI Founded: 1 April 1935                              Headquarters: Mumbai                           Governor: Shaktikanta Das