The Reserve Bank of India (RBI) on Wednesday allowed SBI Mutual Fund to acquire up to 9.99% stake in IndusInd Bank, the latter said in an exchange filing.
The RBI has asked the fund house to acquire the shareholding by October 10, 2024. The fund house must ensure that the aggregate holding in the bank does not exceed 9.99% of the paid-up share capital, or voting rights, of the bank at all times.
The approval granted by the RBI is subject to the conditions mentioned therein including compliance with the relevant provisions of Banking Regulation Act, 1949, and RBI’s master direction and guidelines on acquisition and holding of shares or voting rights in banking companies, among other norms.
IndusInd Bank had reported strong financials in the first quarter of 2023-24, with its net profit rising to Rs 2,124 crore, 32% higher compared with Rs 1,603.29 crore posted in the June 2022 quarter. The lender’s net interest income grew to Rs 4,867.11 crore, up 17.98% compared to Rs 4,125.20 crore reported in the year-ago period.
Shares of IndusInd Bank closed 0.01% higher at Rs 1,421.15 ahead of the announcement on Wednesday, as compared with a 0.60% advance in the benchmark
BSE Sensex.
In May, the Reserve Bank of India had allowed SBI Funds Management, a joint venture between the State Bank of India and France’s Amundi, to acquire a 9.99% stake in HDFC Bank and had recommended the company do so within the next six months.