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Regulator IRDAI approves transfer of HDFC Life shares to HDFC Bank

HDFC announced a $40 billion deal last year to merge with the top private lender

HDFC bank
HDFC Bank
Reuters Bengaluru
1 min read Last Updated : Jun 23 2023 | 8:35 PM IST
An Indian regulator has approved HDFC Ltd's move to transfer its near 49% stake in its life insurance unit to HDFC Bank, clearing a key step ahead of their merger.

HDFC announced a $40 billion deal last year to merge with the top private lender. As part of the transaction, which is set to close next month, HDFC Ltd was required to transfer its units to HDFC Bank.

The Insurance Regulatory and Development Authority of India (IRDAI) has also allowed HDFC Ltd to raise its stake in HDFC Life to more than 50%.

Post-merger, HDFC Bank will have a majority stake in the insurer, allowing the bank to show it as a subsidiary and consolidate its earnings.

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Topics :IRDAIHDFC Life InsuranceHDFC BankHDFC Life

First Published: Jun 23 2023 | 8:35 PM IST

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