SBI Funds Management (SBIFML), a joint venture between the State Bank of India and France’s AMUNDI, received permission from the Reserve Bank of India (RBI) to purchase up to a 9.99% stake in HDFC Bank and has recommended the company do so within six months i.e., by November 15, 2023.

According to HDFC Bank, the authorisation was granted concurrently with the application submitted by SBIFML to the RBI, with the clearance subject to a few conditions.

The RBI has approved SBI Funds Management’s application and directed them to acquire the stakes within six months, or by November 15.

According to HDFC Bank, SBI Funds Management must maintain aggregate ownership in the bank of less than 10% of the bank’s paid-up share capital or voting rights at all times.

“We would like to inform you that the RBI vide its letter dated May 16, 2023, addressed to SBIFML, has accorded its approval to SBIFML for acquiring up to 9.99% of the paid-up share capital or voting rights of HDFC Bank Limited,” the bank said.

SBI presently owns 63% of SBI Funds Management, with AMUNDI Asset Management owning the other 37% through its Indian subsidiary.