Housing Development Finance Corporation (HDFC) on Tuesday has received Reserve Bank of India (RBI) approval to buy 9.9 percent stake in Bandhan Bank following the Gruh Finance deal.
Gruh Finance, the affordable housing finance arm of HDFC, was taken over in January by Kolkata-based Bandhan Bank in a share swap deal.
After the announcement of the deal, an application was made by HDFC to the RBI for holding shares in Bandhan Bank, HDFC Ltd said in a regulatory filing on Tuesday.
The scheme remains subject to approvals from the National Company Law Tribunal and the respective shareholders of Gruh Finance and Bandhan Bank, it said.
The Gruh Finance deal will reduce the stake of Bandhan Financial Holdings Ltd in Bandhan Bank to about 61 percent from the current 82 percent. The share swap ratio for the merger will be 568 shares of Bandhan Bank for every 1,000 shares of Gruh Finance.
(With inputs from PTI)