RBI Approves HDFC for Holding up to 9.9% Stake in Bandhan Bank

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.

Details:

• 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.
• Recently RBI 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.
• The amalgamation scheme is awaiting approvals from the National Company Law Tribunal (NCLT) and the respective shareholders of Gruh Finance and Bandhan Bank.
• The Gruh Finance deal will reduce the stake of Bandhan Financial Holdings Ltd. in Bandhan Bank to about 61% from the current 82%.
• The share swap ratio for the merger will be 568 shares of Bandhan Bank for every 1,000 shares of Gruh Finance.

Question:

Q. The Reserve Bank of India (RBI) has given its in-principle approval to whom for acquiring 9.9 per cent stake in Bandhan Bank following the Gruh Finance deal? 

a. State Bank of India (SBI)
b. Highways Development Finance Corporation (HDFC) Ltd.
c. Housing Development Finance Corporation (HDFC) Ltd.
d. Haryana Urban Development Corporation (HUDCO)