RBI’s New Guideline Advances Kotak Mahindra Bank’s Shares on Monday: Details Here

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RBI’s New Guideline Advances Kotak Mahindra Bank’s Shares on Monday: Details Here
Credit: © Reuters.

By Malvika Gurung

Investing.com -- The Mumbai-based private sector lender Kotak Mahindra Bank (NS: KTKM ) informed the exchanges on November 29 that RBI has allowed the country’s largest insurer Life Insurance Corporation of India (LIC) to raise its stake in the company up to 9.99%.

Currently holding a stake of 4.96% in Kotak Mahindra Bank, LIC has received the green signal to increase its holding in the private lender up to almost 10% of the paid-up equity share capital of the bank, while the central bank’s (RBI) approval will remain valid for a year.

Shares of the private lender grew 2.8% to end Monday’s session at Rs 2,019.6 apiece. On Nov 26, as per a panel recommendation, RBI accepted to increase promoter stake in private banks up to 26%, and non-promoter stake to 10%.

RBI’s approval for LIC in this matter is subjected in compliance with the provisions issued by the SEBI, provisions of the FEMA, and any other guidelines/regulations and statutes, as applicable, added Kotak Mahindra Bank in its statement.

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