MUMBAI - India's HDFC Bank said on Wednesday that the Reserve Bank of India had allowed SBI Funds Management Ltd to acquire a stake of up to 9.99% in the private lender.

The RBI has "advised" SBI Funds Management—a joint venture between State Bank of India and France's AMUNDI—to acquire the stake by Nov. 15, 2023, HDFC Bank said.

SBI Funds Management must ensure that its aggregate holding remains below 10% of the paid-up share capital or voting rights of HDFC Bank, the RBI said, as per HDFC Bank's stock exchange filing.

SBI currently holds a 63% stake in SBI Funds Management, while AMUNDI Asset Management holds the rest through its Indian subsidiary.

HDFC Bank is in the process of merging with its parent company Housing Development Finance Corp. The merger is expected to conclude by July.

(Reporting by Siddhi Nayak; Editing by Savio D'Souza)