RBI allows HDFC or HDFC bank to raise stake in Life, ERGO over 50%

22 Apr 2023 , 08:13 AM

Amid HDFC- HDFC Ban merger, the central bank RBI has allowed either of two to have more than 50% ownership in HDFC Life and HDFC ERGO, the bank told stock exchanges in the customary filing on Friday.

SEBI has also asked the bank to comply with liquidity and reserves requirements without any exception from the date of the merger.

HDFC Bank CFO Srinivasan Vaidyanathan told investors in a conference call that, ‘Either HDFC or HDFC Bank can increase their stake above 50% before the effective date of the merger’. He added, ‘There are no guidelines whether this has to be through fresh infusion of funds or purchase of shares from the market.’