LIC will get RBI nod to extend stake in Kotak Mahindra Financial institution

Non-public lender Kotak Mahindra Financial institution at the moment stated that Life Insurance coverage Company (LIC) has acquired approval from the Reserve Financial institution of India (RBI) to extend its stake within the Financial institution as much as 9.99%.

Whereas saying reformed guidelines on the construction of personal sector banks, the RBI had on Friday stated that non-promoter share holdings would proceed to be capped at 10% for people and non-financial establishments.

The approval by the Central Financial institution will probably be legitimate for one yr.

At the moment, LIC holds 4.96% in Kotak Financial institution, as per the data out there from the shareholding sample until 30 September.

“We want to inform you that Kotak Mahindra Financial institution Restricted (“Financial institution”) has acquired an intimation from Life Insurance coverage Company of India (“LIC”) stating that the Reserve Financial institution of India had granted its approval to UC, for growing its holding within the Financial institution as much as 9.99% of the paid up fairness share capital of Financial institution,” Kotak stated in an change submitting.

On Monday, Kotak Mahindra Financial institution shares have been buying and selling 2.55% greater in midday offers at 2,014.30 on NSE.

LIC’s elevating of stake is topic to compliance with the provisions of the instructions given by RBI in 2015 and required rules by the market regulator SEBI.

The RBI norms mandate that each particular person or an entity who intends to make an acquisition in Non-public Banks of greater than 5% stake, prior approval is required from the Central Financial institution.

LIC has made an software to the Reserve Financial institution and on the receipt of it, the RBI has sought suggestions on the acquisition from the involved Financial institution.

In the meantime, LIC, which is likely one of the largest institutional traders in India’s inventory market, is aiming to record on home bourses by March subsequent yr in an preliminary public providing estimated at $12 billion, set to be the nation’s largest.

Kotak Mahindra Financial institution, one of many largest non-public banks in India, boasts of a free float market capitalisation of practically 3 lakh crore.

Catch all of the Company information and Updates on Stay Mint.
Obtain The Mint Information App to get Day by day Market Updates & Stay Enterprise Information.

Much less

Subscribe to Mint Newsletters

* Enter a sound electronic mail

* Thanks for subscribing to our e-newsletter.

Supply hyperlink