Shares of Kotak Mahindra Bank led by Uday Kotak jumped as much as 4.1% to hit an intraday high of Rs 2,043.5 on BSE after the private lender informed exchanges that the bank The country’s central bank – the Reserve Bank of India – has approved the Life Insurance Corporation of India for its acquisition of the bank’s shares.
RBI has approved for LIC to increase its holding ratio at the bank to 9.99%. Currently, LIC owns a 4.96% stake in Kotak Mahindra Bank, data from BSE shows.
“We would like to inform you that Kotak Mahindra Bank Limited has received a telegram from the Life Insurance Corporation of India (“LIC”) stating that the Reserve Bank of India has approved the LIC, as has increased its holding in the Bank to 9.99 per cent of the Bank’s contributed share capital, in compliance with the provisions of the General Orientation on “Pre-approval for the acquisition of shares or voting rights”. Decision in Private Sector Banks November 19, 2015 and the General Orientation on ‘Special Ownership of Industry Banks’ May 12, 2016, provisions of the current regulations set forth by the Securities and Exchange Commission. and Trading of India, the provisions of the Foreign Exchange Management Act 1999 and any other guidelines/regulations and regulations, if any. The approval is valid for a period of one year,” Kotak Mahindra Bank said in a stock exchange filing.
As of 2:32 p.m., shares of Kotak Mahindra Bank were trading 3.45% higher at Rs 2,028, outperforming Sensex’s 0.22% gain.
