Kotak Mahindra Bank (KMB) and Bank of Baroda (BoB) on Saturday said they have become initial subscribers to the Memorandum and Articles of Association of IBBIC Pvt Ltd (IBBIC).
IBBIC is proposed to be incorporated as a financial technology company with the objective of providing a platform for exploring, building and implementing Distributed Ledger Technology (DLT) solutions for the financial services sector.
As per their regulatory filings, KMB and BoB have picked up 6.67 per cent stake each in IBBIC. Each Bank has acquired 50,000 equity shares of face value Rs. 10 each in IBBIC for a cash consideration of Rs 5 lakh each.
KMB and its subsidiaries and BoB and its subsidiaries in the normal course of business may have business dealings with IBBIC at an arm's length, according to their regulatory filing.
BoB said the Company Registration application of IBBIC will be submitted to the Registrar of Companies, Mumbai by the end of November 2020.