RBI permits LIC to increase its shareholding in Kotak Mahindra Bank

  • Home
  • RBI permits LIC to increase its shareholding in Kotak Mahindra Bank

Sushmita Goswami | Nov 29, 2021 | Views 263506

RBI permits LIC to increase its shareholding in Kotak Mahindra Bank

RBI permits LIC to increase its shareholding in Kotak Mahindra Bank

Life Insurance Corporation (LIC) has received approval from the Reserve Bank of India (RBI) to expand its ownership in Kotak Mahindra Bank to 9.99 percent, the private lender announced today.

The Central Bank’s approval will be valid for one year.

According to the facts available from the shareholding pattern to September 30, LIC owns 4.96 percent of Kotak Bank.

“We wish to inform you that Kotak Mahindra Bank Limited (“Bank”) has received notification from Life Insurance Corporation of India (“LIC”) that the Reserve Bank of India has approved UC’s request to increase its holding in the Bank to 9.99 percent of the paid up equity share capital of the Bank,” Kotak said in an exchange filing.

On the NSE, Kotak Mahindra Bank shares were trading 2.55 percent higher at 2,014.30 at midday on Monday.

The increasing of LIC’s stake is subject to the requirements of the RBI’s 2015 guidelines as well as the market regulator SEBI‘s applicable regulations.

According to RBI regulations, anyone or any company wishing to acquire more than a 5% share in a private bank must obtain prior approval from the central bank.

The LIC has submitted an application to the Reserve Bank, which has asked the concerned bank for views on the acquisition.

The RBI announced new regulations on the structure of private sector banks on Friday, saying that non-promoter share holdings for individuals and non-financial entities will remain capped at 10%.

Meanwhile, LIC plans to list on local exchanges by March of next year in a $12 billion initial public offering, which is expected to be the country’s largest.

One of India’s largest private banks, Kotak Mahindra Bank, has a free float market capitalization of about 3 lakh crore.

StudyCafe Membership

Join StudyCafe Membership. For More details about Membership Click Join Membership Button

Join Membership

In case of Any Doubt regarding Membership you can mail us at [email protected]

Join Studycafe's What's App Group or Telegram Channel for Latest Updates on Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"




Leave a Reply