CURRENT AFFAIRS: BANKING & FINANCE NEWS
RBI allows LIC to acquire up to 9.99% stake in HDFC Bank
- The Reserve Bank of India has allowed Life Insurance Corp. of India to acquire as much as 9.99 percent of HDFC Bank, the country’s largest private lender told stock exchanges on January 25.
- LIC owns a 5.19 percent stake in the bank, according to the lender’s shareholding pattern as of December 31.
- As per the bank’s exchange notification, the RBI informed the decision to the LIC through a letter dated January 25, under which LIC can acquire an aggregate holding up to 9.99 percent of the paid-up share capital or voting rights of HDFC Bank Limited.
- Recently, HDFC Bank shares had witnessed heavy sell offpushing the shares to near 52-week lows, post the announcement of the bank’s third quarter
- Some analysts speculate that the sell off is due to foreign investors panicking over a recent Sebi proposal concerning foreign portfolio investors.
