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LIC receives RBI approval to increase stake in Kotak Mahindra Bank to 9.99%

LIC receives RBI approval to increase stake in Kotak Mahindra Bank to 9.99%

LIC's current stake in the private bank stands at 4.96 per cent; the RBI's approval is valid for a period of one year.

Boosted by the development, the Kotak Mahindra Bank share is trading 3.21 per cent or Rs 63.70 up at Rs 2,028.4 on the NSE today. Boosted by the development, the Kotak Mahindra Bank share is trading 3.21 per cent or Rs 63.70 up at Rs 2,028.4 on the NSE today.

Private lender Kotak Mahindra Bank Limited today said insurance giant Life Insurance Corporation of India (LIC) has received Reserve Bank of India's (RBI) approval for increasing its holding in the bank up to 9.99 per cent.  The approval is valid for a period of one year.

LIC's current (as of September 30) holding in Kotak Bank stands at 4.96 per cent. Before this, LIC had raised its stake in Kotak Mahindra Bank by 0.73 per cent to 3.18 per cent in 2020.

In an exchange filing, Kotak Mahindra Bank said: "We wish to inform you that Kotak Mahindra Bank Limited ("Bank") has received an 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% of the paid-up equity share capital of Bank."

Also read: Uday Kotak raises concerns on central banks printing too much money

Boosted by the development, the Kotak Mahindra Bank share is trading 3.21 per cent or Rs 63.70 up at Rs 2,028.4 on the NSE today.

Kotak Mahindra Bank had reported a 24 per cent quarter-on-quarter (QoQ) rise in net profit at Rs 2,032 crore for the July-September quarter. Net interest income (NII) rose 2 per cent QoQ to Rs 4,021 crore during the quarter under review. On a year-on-year (YoY) basis, it was 3 per cent higher than Rs 3,897 crore in the same quarter of last year.

Also Read: 'Time has come': Uday Kotak suggests printing money to save economy