The Reserve Bank of India (RBI) has granted in-principle approval to ICICI Prudential Asset Management Company Limited and its group entities to acquire an aggregate holding of up to 9.95% in IDFC FIRST Bank Limited. This approval is subject to strict compliance with banking regulations and the Foreign Exchange Management Act. The acquirer must complete the share acquisition within one year from the date of the RBI letter, failing which the approval will lapse.
Regulatory Approval for Shareholding Increase
IDFC FIRST Bank Limited has announced receipt of approval from the Reserve Bank of India (RBI) concerning an application filed by the ICICI Prudential Asset Management Company Limited (the “Applicant”). The approval allows the Applicant, along with its group entities associated with ICICI Bank Limited, to acquire an aggregate holding in the Bank up to a maximum of 9.95% of the total paid-up share capital or voting rights.
Conditions and Compliance Mandates
The RBI has stipulated several mandatory conditions for this acquisition. The approval is contingent upon the Applicant and its group entities adhering to the provisions outlined in the Banking Regulation Act, 1949, and the RBI Directions concerning the Acquisition and Holding of Shares by Commercial Banks, dated November 28, 2025. Furthermore, compliance with the Foreign Exchange Management Act, 1999, and all other applicable statutes is required.
Timeline and Holding Limits
A critical condition set by the RBI is the timeframe for execution: If the Applicant fails to secure the major shareholding within a period of 1 (one) year from the date of the RBI letter, the approval will automatically stand cancelled. Additionally, the aggregate shareholding must not, at any point, exceed the approved limit of 9.95% of the Bank’s paid-up share capital or voting rights.
Source: BSE
