The Reserve Bank of India (RBI) has given its approval to Life Insurance Corporation (LIC) to raise its stake in private lender Kotak Mahindra Bank to 9.99 per cent. Currently, LIC holds 4.96% stake in the private lender. Kotak Mahindra Bank Limited has received an intimation from LIC stating that the RBI had granted its approval to LIC, for increasing its holding in the Bank up to 9.99 per cent of the paid-up equity share capital of the Bank.
- The approval of the central bank will be valid for one year. As per RBI norms, prior approval of the RBI is required to increase the stake in private banks beyond 5 per cent.
- LIC is one of the biggest institutional investors in India’s stock market and has a stake in a number of private and public sector banks. LIC has a stake in as many 24 scheduled commercial banks, data from Capitaline shows.
- Among other major banks, LIC holds 8.8 per cent in Canara Bank, 8.3 per cent in Punjab National Bank and State Bank of India, 8.2 per cent in Axis Bank, and 7.6 per cent in ICICI Bank.