HDFC AMC Gets RBI Approval to Acquire Upto 9.5% Stake in KVB, DCB Bank

Current Context: HDFC AMC has received approval from the RBI to acquire up to 9.5% stake in KVB and DCB Bank.This approval 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.

• HDFC AMC is a subsidiary of HDFC Bank, which is one of the largest private sector banks in India. HDFC AMC is also one of the leading asset management companies in the country, with a market share of over 13% as of June 2023.
• The acquisition of stake in KVB and DCB Bank will help HDFC AMC diversify its portfolio and increase its presence in the banking sector. KVB and DCB Bank are both small finance banks that cater to the needs of the underbanked and unbanked segments of the society.
• They offer a range of products and services such as savings accounts, loans, deposits, insurance, mutual funds, etc. KVB has a network of over 800 branches across 22 states and union territories, while DCB Bank has over 350 branches across 19 states and union territories.
• The acquisition of stake in these banks will also enable HDFC AMC to leverage their customer base and distribution channels for its mutual fund products.

Question:

Q.1 Which of the following is a subsidiary of HDFC Bank?
a. HDFC AMC
b. KVB
c. DCB Bank
d. SBI