The Reserve Bank of India (RBI) has given its in-principle approval to Housing Development Finance Corporation (HDFC) Ltd for acquiring 9.9 per cent stake in Bandhan Bank following the Gruh Finance deal. Gruh Finance, the affordable housing finance arm of HDFC Ltd, was taken over by Bandhan Bank in a share-swap deal in January.
After the deal was announced, HDFC made an application to the RBI for holding shares in Bandhan Bank. On Monday, the central bank gave its approval to HDFC to acquire the shareholding of up to 9.9 per cent of the paid-up capital of Bandhan Bank upon the effective date of the scheme of amalgamation.
"RBI had on the even date, granted its in-principle approval to the Corporation to acquire the shareholding of 9.9 per cent or less of the paid-up voting equity capital of Bandhan (Bank) upon the effective date of the scheme," HDFC said in a regulatory filing.
The amalgamation scheme is awaiting approvals from the National Company Law Tribunal (NCLT) and the respective shareholders of Gruh Finance and Bandhan Bank, HDFC Ltd said.
The Gruh Finance deal will reduce the stake of Bandhan Financial Holdings Ltd in Bandhan Bank to about 61 per cent from the current 82 per cent. The share swap ratio for the merger will be 568 shares of Bandhan Bank for every 1,000 shares of Gruh Finance.