Bizextindia : Life Insurance Corporation (LIC), India’s top state owned insurance company has received Reserve Bank of India (RBI) approval to acquire upto 9.99% of the total issued and paid up capital of Indusind Bank.
Currently, LIC holds 4.95% of Indusind Bank.
“the Bank has received an 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% of the total issued and paid up capital of the Bank, to acquire upto 9.99% of the total issued and paid up capital of the Bank, subject to 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 Securities and Exchange Board of India, the Foreign Exchange Management Act, 1999 and any other guidelines/regulations and applicable laws” said Indusind bank in a regulatory filing.
The approval is valid for a period of one year i.e. up to December 8, 2022.
Last month, LIC has received RBI nod for increasing its stake in Kotak Mahindra Bank to 9.99%.