RBI gives ICICI AMC approval to raise stake in HDFC Bank to 9.95%

The Reserve Bank of India (RBI) has given approval to ICICI Prudential Asset Management Company and other ICICI group entities to raise their stake in HDFC Bank to as much as 9.95%, HDFC said in a filing late on Wednesday.

As of February 6, ICICI group entities held a total 4.07% stake in the lender, it said. HDFC Bank, India's largest bank by market value, has a valuation of about $157 billion.

The Reserve Bank of India's approval, which followed an application by ICICI AMC, is valid for one year. ICICI and its group entities must also ensure their holding in HDFC Bank does not exceed 9.95% at all times. 

If ICICI group's stake in the lender falls below 5%, it will need fresh RBI approval to raise the shareholding to 5% or more.