The RBI draft circular from October 4, 2024, if implemented as is, could force HDFC Bank (the promoter) to reduce its ownership in HDB Financial Services to below 20% due to overlapping businesses. This could negatively impact HDB's operations, finances, and share price.
"Our promoter may be required to significantly reduce its ownership in our company that is to less than 20% or such higher percentage with the prior RBI approval on account of over overlapping business with our promoter. So basically HDFC bank business and HDB financial services business is overlapping and one of the members of our promoter group if the draft circular issued by RBI on 4th October 2024 is implemented in its current form which may have a material adverse impact on our business operations, financial position and share price."
