IndusInd Bank on Friday informed that the bank has received an intimation from the Reserve Bank of India (RBI) that it has granted its approval to Life Insurance Corporation (LIC), shareholder of the bank, to raise stake in the private lender to up to 9.99%. LIC currently holds 4.95% of the total issued and paid up capital of IndusInd.
The said approval is valid for a period of one year i.e. up to December 8, 2022. Shares of IndusInd Bank were trading over 1% higher in Friday's opened deals at ₹961 apiece on the BSE.
"The approval is subject to compliance with the provisions of the Master Direction on "Prior approval for acquisition of shares or voting rights in private sector banks dated November 19, 2015 and Master Direction on 'Ownership in private sector banks' dated May 12, 2016, provisions of the applicable regulations issued by the Securities and Exchange Board of India, provisions of the Foreign Exchange Management Act, 1999 and any other guidelines/regulations and statutes, as applicable. The approval is valid for a period of one year," IndusInd Bank said in an exchange filing today.
The RBI norms mandate that every person or an entity who intends to make an acquisition in private banks of more than 5% stake, has to take prior approval from the central bank. LIC's raising of stake is subject to compliance with the provisions of the directions given by RBI in 2015 and required regulations by the market regulator SEBI.
Last month, Kotak Mahindra Bank had informed that LIC has received approval from the RBI to raise its stake in lender to up to 9.99%.
Source : Livemint
No comments:
Post a Comment