LIC gets RBI nod to raise stake in IndusInd Bank to 9.99%

Insurance giant Life Insurance Corporation (LIC) has got the approval of Reserve Bank of India to raise its stake to up to 9.99 per cent of the total issued and paid-up share capital of the Hinduja-owned IndusInd Bank from the current 4.95 per cent. According to the latest exchange filing by IndusInd Bank, this approval will be valid for a period of one year till December 8, 2022.

“We are pleased to inform you that the Bank has received [intimation] from the RBI on December 9, 2021 that it has granted its approval to Life Insurance Corporation (LIC), shareholder of the Bank, who holds 4.95 per cent of the total issued and paid-up capital of the Bank,” the bank said in the filing.

It further mentioned this approval is in compliance with the Master Direction on ‘Prior Approval for Acquisition of Shares or Voting Rights in Private Sector Banks’ dated November 19, 2015, Master Direction on ‘Ownership in Private Sector Banks’ dated May 12, 2016, regulations of the Securitires and Exchange Board of India, the Foreign Exchange Management Act, 1999 and other guidelines/regulations and applicable laws.

Meanwhile, RBI also granted approval to LIC for increasing its holding in Kotak Mahindra Bank up to 9.99 per cent and it is valid for one year. Prior to this, LIC’s holding in Kotak Mahindra Bank stood at 4.96 per cent as of September 30 and the insurance giant had also raised its stake in the private lender by 0.73 percent 3.18 percent in 2020.

“We wish to inform you that Kotak Mahindra Bank Limited has received [intimation] from Life Insurance Corporation of India (LIC) stating that the Reserve Bank of India had granted its approval to UC, for increasing its holding in the Bank up to 9.99 per cent of the paid-up equity share capital of Bank,” Kotak Mahindra Bank said in an exchange filing.

Also read: RBI Governor Shaktikanta Das’ extended 3-year term starts today

Also read: Meesho's MeeSOPs: Employees can convert 25% of salary to ESOPs