Reserve Bank of India (RBI) permits ICICI Bank to acquire up to 9.95% stake in eight lenders

Key facts

• The RBI has approved the application for ICICI Prudential Asset Management Company Limited (ICICI Prudential AMC), along with group entities of ICICI Bank, to acquire an aggregate holding of up to 9.95% in eight banks.
• The lenders covered under the approval are Bandhan Bank Limited, City Union Bank Limited, Equitas Small Finance Bank Limited, Federal Bank Limited, IDFC First Bank Limited, HDFC Bank Limited, The Karur Vysya Bank Limited, and RBL Bank Limited.
• ICICI Bank, the second-largest private sector lender in India, must complete the acquisition of paid-up equity capital or voting rights within one year from the date of the RBI letter.
• The permissions were granted under the consolidated Master Direction on acquisition and holding of shares or voting rights in banking companies.