Select Page

The Reserve Bank of India (RBI) has given its nod to HDFC Asset Management Company (AMC) to acquire up to 9.5% stake in Karur Vysya Bank, the bank said on Thursday in a filing to the exchanges. However, the RBI approval is with a caveat that HDFC shall not exceed its holding in the bank beyond the 9.5% limit, the filing said.

The release further revealed that if HDFC AMC’s aggregate holding falls below 5%, prior approval of RBI will be required to increase it to 5% or more of the paid-up share capital or voting rights of the bank.

The aforesaid approval granted by RBI is subject to compliance with the relevant provisions of the Banking Regulation Act, 1949, RBI’s Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies and other regulatory conditions.

Following the update, HDFC AMC shares were trading 0.35% lower at Rs 2675 on the BSE while Karur Vysya Bank stock rose over 1% to Rs 135.70 around 9.30 am.

On Wednesday, Karur Vysya Bank shares ended with a decline amid selling pressure in bank and financial stocks. The stock fell after a three-session rally. Meanwhile, HDFC AMC shares were up to close at Rs 2,692.20 on the NSE on Wednesday, gaining by Rs 43.65 or 1.65%.

Karur Vysya shares are trading above their 50-day and 200-day simple moving averages (SMA) as the stock remains in an overbought zone with MFI at 74 according to Trendlyne data. A number above 70 is considered as overbought. It has also been trading with high volatility as the 1-year beta stands at 1.4.

Benchmark indices Sensex and Nifty started on a tepid note on Thursday, tracking weak global cues, on the hawkish stance of the US Federal Reserve. The US Federal Reserve left the benchmark interest rates unchanged on Wednesday but indicated that they will remain higher for longer, thus dampening market sentiment.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

  • Published On Sep 21, 2023 at 12:15 PM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETBFSI App

  • Get Realtime updates
  • Save your favourite articles

icon g play

icon app store

Scan to download App
bfsi barcode

Share it on social networks