Shares of YES Bank Ltd, Bandhan Bank Ltd and IndusInd Bank Ltd rallied up to 13 per cent in Tuesday’s trade after the Reserve Bank of India (RBI) gave nod to HDFC Bank Ltd to acquire up to 9.5 per cent stake each in the two private lenders. YES Bank shares jumped 12.63 per cent to hit a high of Rs 25.68 on BSE. The stock hit a 52-week high of Rs 26.25 on January 16, 2024.

IndusInd Bank shares gained initially and were up 0.62 per cent at Rs 1,548.90, before entering the negative terrain. This stock was trading 0.72 per cent lower at Rs 1,528.15. Similarly, shares of Bandhan Bank hit a high of Rs 223.45 but were later trading at Rs 220.70, down 0.76 per cent.

The RBI accorded its approval to HDFC Bank Limited to acquire “aggregate holding” of up to 9.50 per cent of the paid-up share capital or voting rights in Bandhan Bank Limited, IndusInd Bank and YES Bank. The approval has been accorded pursuant to the applications made by the applicant to RBI.

The RBI has also conveyed that if the applicant fails to acquire major shareholding within one year from the date of this letter, this approval shall stand cancelled.

“The applicant has also been advised to ensure that their “aggregate holding” in the Bank does not exceed 9.50 per cent of the paid-up share capital or voting rights of the Bank, at all times. If the “aggregate holding” falls below 5%, prior approval of the RBI will be required to increase it to 5 per cent or more of the paid-up share capital or voting rights of the bank,” the three banks said in separate releases.