Mahindra and Mahindra (M&M) bought a 3.53% stake in RBL Bank for Rs 417 crore on Friday. The company met with the RBL Bank executives following its acquisition.

The tech-to-tractor giant clarified that the investment in RBL Bank is an initial investment, and they are looking for further investment opportunities based on pricing, regulatory approvals, and the necessary procedures.

The company’s move to acquire a stake comes after the company displayed positive financial developments in their June quarter report for the Mahindra Group. Within the group, Mahindra & Mahindra Financial Services reported a consolidated net profit of Rs 362.22 crore, which is a substantial growth of 51.01%.

The company has clarified that it won’t acquire more than a 9.9% stake in the bank under any circumstances.

The investment signals the group’s interest in the financial sector. The newly made union with RBL Bank holds a promising future with the affirmation of mutual growth and new opportunities.