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Life Insurance Corporation of India has received approval from the RBI to raise its stake in Kotak Mahindra Bank to up to 9.99 per cent; the bank informed the stock exchanges on Monday.
LIC held 4.96 per cent stake in the private lender as of 30 September 2021.“We wish to inform you that Kotak Mahindra Bank Limited (“Bank”) has received an intimation from Life Insurance Corporation of India (“LIC”) stating that the Reserve Bank of India had granted its approval to UC for increasing its holding in the Bank up to 9.99 per cent of the paid-up equity share capital of Bank, subject to compliance with the provisions of the Master Direction on “Prior approval for the acquisition of shares or voting rights in private sector banks dated November 19, 2015, and Master Direction on ‘Ownership in private sector banks’ dated May 12, 2016, provisions of the applicable regulations issued by the Securities and Exchange Board of India, provisions of the Foreign Exchange Management Act, 1999 and any other guidelines/regulations and statutes, as applicable. The approval is valid for one year,” said the notice.
The RBI norms mandate that every person or an entity who intends to acquire private banks of more than a 5 per cent stake has to take prior approval from the central bank. Kotak Mahindra Bank shares were trading up 2.96 per cent on the NSE.
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