LIC gets nod from RBI to increase its stake upto nearly 10% in Kotak Mahindra Bank.
- ByStartupStory | November 30, 2021
Insurance Corporation of India, LIC have received approval from the Reserve Bank of India (RBI) to raise its stake to almost 10% in private sector lender Kotak Mahindra Bank (Kotak). Kotak Mahindra Bank has authenticated the news by admitting to receive an intimation from LIC. Kotak said on its regulatory filing, “Kotak Mahindra Bank has received an intimation from Life Insurance Corporation of India (LIC) stating that the Reserve Bank of India had granted its approval to LIC, for increasing its holding in the bank up to 9.99 per cent of the paid-up equity share capital of the bank,”. The approval will be valid for one year.
As per data available in BSE, up until September 30 2021, LIC held 4.96 percent stake. This boom in stake comes in relation to RBI’s master directions on prior approval for acquisition of shares or voting rights in private sector banks beyond 5%. It will also be subject to SEBI’s regulations “Foreign Exchange Management Act” and others.
Post-announcement the shares of Kotak in BSE gained 2.92 percent before closing. LIC is one of the biggest institutional investors in India’s stock market and has a stake in a number of private and public sector banks. LIC has a stake in as many 24 scheduled commercial banks.
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