The said approval is valid for a period of one year i.e. till December 8, 2022, the bank said.
Private bank IndusInd Bank on December 10 said that the RBI has approved Life Insurance Corporation to increase its stake in the bank to around 10%.
The bank has received a notification from RBI on December 9, 2021 that it has approved Life Insurance Corporation (LIC), the shareholder of the bank, to acquire up to 9.99% of the total issued and paid-up capital of the bank. , the bank said in a regulatory filing on the stock exchanges.
The state-run insurer holds 4.95% of the total issued and paid-up capital of the bank.
RBI’s approval is subject to ‘prior approval for acquisition of shares and voting of private sector banks’ as well as compliance with SEBI rules and any guidelines or regulations.
The Reserve Bank last month accepted most of its working group’s recommendations on corporate ownership of private sector banks by allowing unrestrained promoter shareholding in the first five years of operations. It also recommended raising it to 26% from the existing 15% and new capital requirements after 15 years.
This was considered beneficial for banks like Kotak Mahindra Bank and IndusInd Bank.
The said approval is valid for a period of one year i.e. till December 8, 2022, the bank said.
IndusInd Bank shares were marginally lower at Rs 947 on BSE in afternoon trade.
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