Fair trade regulator approved on Monday HDFC Acquisition of 4.99 percent shareholding of the bank in HDFC ERGO General Insurance company. In June, HDFC Bank had said that its board has approved the purchase of over 3.55 crore shares in the group firm. HDFC ERGO General Insurance Company 1,906 crore from the parent company (HDFC).

is the promoter and related party of HDFC Bank.

According to a tweet by CCI, “The Commission has approved the acquisition of 4.99% of the outstanding equity share capital of HDFC ERGO General Insurance Company by HDFC Bank.”

According to the joint notice filed with the regulator, the proposed combination will enable the lender to participate in the growth opportunity of HDFC Ergo General Insurance and create long-term value for its shareholders.