RBI allows LIC to raise its holdings in IndusInd bank to 10%
- ByStartupStory | December 11, 2021
The IndusInd bank in a regulatory filing said, “We are pleased to inform you that the Bank has received an intimation from the RBI on December 9, 2021, that it has granted its approval to Life Insurance Corporation(LIC) to acquire up to 9.99 percent of the total issued and paid-up capital of the bank,”
This announcement comes after its peer Kotak Bank had recently announced the RBI directory of approving LIC’s increased stake in their company. Currently, LIC holds a 4.59 per cent stake in IndusInd bank. Promoters of the private bank have also got permission to bring their shareholding in the banks to up to 26 per cent from earlier 15 per cent.
The approval is valid for a period of one year i.e. up to December 8, 2022. The investment, if happens, will be subject to compliance with the Master Direction on ‘Prior Approval for Acquisition of Shares or Voting Rights in Private Sector Banks’, Master Direction on ‘Ownership in Private Sector Banks’, regulations of the SEBI, the Foreign Exchange Management Act, 1999 and any other guidelines/regulations and applicable laws.
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