Shares of Karur Vysya Bank were trading 3% higher on 30 November after the Reserve Bank of India (RBI) gave SBI Mutual Fund the approval to acquire an additional 9.99% stake in the bank. 

In its regulatory filing, the bank said that if SBI Mutual Fund fails to acquire a major shareholding in one year from the date of the RBI’s letter, the given approval will be revoked and will stand cancelled. 

The bank further added, “Further, if the aggregate holding falls below 5 percent, prior approval of the RBI will be required to increase it to 5 percent or more of the paid-up share capital.”

As of 30 September, the promoter holdings in the bank remained unchanged at 2.2%, whereas the FIIs (foreign institutional investors) hold an 18.1% stake, and DIIs (domestic institutional investors) hold 32.3% shareholding in the bank. 

Among the DIIs, mutual funds hold 24.69%; SBI Banking & Financial Services Regular Growth and UTI Banking and Financial Services Fund Growth have the highest holdings across mutual funds at 3.74% and 3.59% respectively. 

On 29 November, the bank opened three branches in Tamil Nadu and one in Karnataka, taking its overall branch network to 831. 

At 1:40 pm, the shares of Karur Vysya Bank were trading 1.14% higher at Rs 155.05 on NSE.