HDFC Bank on Tuesday said RBI has given approval to the group to acquire up to 9.5 per cent stake each in six lenders, including ICICI Bank and Axis Bank.

The Reserve Bank of India (RBI) gave its approval on February 5, 2024.

Entities under HDFC Bank Group are HDFC Mutual Fund, HDFC Life Insurance Company, HDFC ERGO General Insurance Company and others.

"The approvals were granted pursuant to applications made by HDFC Bank (as a promoter/ sponsor of the Group) to RBI on December 18, 2023," HDFC Bank said in a regulatory filing.

The six lenders in which HDFC Bank will take stake are -- Axis Bank, Suryoday Small Finance Bank, ICICI Bank, Bandhan Bank, Yes Bank, and IndusInd Bank. The RBI's approval is valid for a period of one year till February 4, 2025, it said.

As per RBI directions, HDFC Bank will have to ensure that the aggregate holding in the six banks does not exceed 9.50 per cent of the paid up share capital or voting rights of the respective banks, at all times.

"In view of the same, whilst HDFC Bank does not intend to invest in these banks, since the "aggregate holding" of HDFC Bank Group, was likely to exceed the prescribed limit of 5 per cent, an application seeking approval of RBI for increase in investment limits was made," it said.

Further, since the RBI directions are applicable on HDFC Bank, the bank has made the application to RBI on behalf of the group, it said.