On July 26, Mahindra & Mahindra (M&M) confirmed that it had developed a stake of 3.53% in private lender RBL Bank for Rs 417 crore.

M&M said it may deliberate further investment in pricing, regulatory endorsements and required procedures. But, in no circumstance will it exceed 9.9%, the company clarified.

A report mentioned that Mahindra Group is keen on picking up a 15-25% stake if it gets the sanctions to be a planned shareholder of RBL Bank.

The Mahindra Group’s venture in the financial services sector is primarily channelled over group company Mahindra & Mahindra Financial Services.

RBL Bank had a bumpy last few years as Vishwavir Ahuja stepped down as MD & CEO in December 2021, and RBI still needs to extend his term. During the same month, the central bank had chosen its own official on the bank’s board.

The unexpected exit of Ahuja and RBI’s deed had put the lens on the private lender’s financial forte and asset quality. As per the media sources, the regulator is looking for a long-term solution for RBL Bank.

The RBL Bank’s shares spiked in the trading session and settled at Rs 238.80 per share on the BSE, which was 7.13% higher than the previous day’s close. Year to date, RBL stock has increased 32.01%.

On the other hand, shares of M&M declined by 1.26%, closing at 1,545.90. Year to date, the stock showed a return of 22.41%.

At 11.50 am, shares were trading 5.97% lower at Rs 1452.60 on the NSE.