Private lender Kotak Mahindra Bank will buy 19.90 per cent stake in Bharti Airtel’s subsidiary Airtel M Commerce Services, on it obtaining the Payment Bank licence from Reserve Bank of India.
AMSL is in the process of applying for payment bank licence with the RBI. The last date to apply to the RBI is February 2. The investment will be subject to regulatory approvals.
Dipak Gupta, Joint Managing Director, Kotak Mahindra Bank said, “Payment banks have the potential to leapfrog India’s financial inclusion agenda. Basic but critical services such as small savings accounts, remittances, etc. will bring a large number of low income households and small businesses under the formal banking network.”
On the investment in AMSL, Gupta added, “Bharti Airtel has the technology and physical infrastructure, a well-entrenched distribution network in rural and remote areas of the country and has the largest telecom customer base, coupled with our banking expertise, this clearly is a win-win for both.”
The announcement was made after market hours.
At day's close on Thursday, shares of Kotak Mahindra Bank ended weaker by 1.59% at Rs 1,330.05 per share, while Bharti Airtel shares closed 0.37% higher at Rs 375.15 per share.