The Reserve Bank of India has given its approval to Life Insurance Corporation of India to raise its stake in Kotak Mahindra Bank to 9.99 per cent.
“Kotak Mahindra Bank has received an intimation from LIC stating that the RBI 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 Bank, subject to compliance with the provisions of the Master Direction on ‘prior approval for acquisition of shares or voting rights in private sector banks’ dated November 19, 2015, and Master Direction on ‘ownership in private sector banks’ dated May 12, 2016, provisions of the applicable regulations issued by the Securities and Exchange Board of India, provisions of the Foreign Exchange Management Act, 1999 and any other guidelines/regulations and statutes, as applicable,”the private sector lender said in a stock exchange filing on Monday.
The approval is valid for a period of one year, it further said.
LIC currently holds 4.96 per cent stake in the bank as of September 30.