The Reserve Bank of India (RBI) has approved ICICI Prudential Asset Management Company (AMC) and ICICI Bank group entities to acquire up to 9.95% stake in IDFC First Bank and Federal Bank.
Both banks informed stock exchanges that they received the RBI’s approval on February 11, 2026. The approval allows ICICI Prudential AMC, along with related entities of the ICICI Bank group, to buy up to 9.95% of the paid-up share capital or voting rights in each bank.
The permission is subject to strict regulatory conditions. The stake purchase must comply with the Banking Regulation Act, 1949, RBI’s guidelines on shareholding in banks, SEBI regulations, and rules under the Foreign Exchange Management Act (FEMA), wherever applicable.
Importantly, the RBI has given a one-year deadline to complete the acquisition. If the stake is not acquired within this period, the approval may lapse.
A 9.95% stake is considered a significant minority holding in the banking sector. While it does not give control over the bank, it allows the investor to have meaningful financial exposure and influence as a large shareholder.
Following the announcement, market participants closely tracked the development, as institutional investments by large financial groups are often seen as a sign of confidence in a bank’s growth prospects.
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