Insurance behemoth LIC will raise its stake in private sector lender Kotak Mahindra Bank to nearly 10 percent, after receiving a grant of approval from the Reserve Bank of India (RBI). Kotak Mahindra Bank (Kotak) said it has received an intimation from LIC regarding the same.

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"Kotak Mahindra Bank has received an intimation from Life Insurance Corporation of India (LIC) stating that the Reserve Bank of India had granted its approval to LIC, for increasing its holding in the bank up to 9.99 percent of the paid-up equity share capital of the bank," Kotak said in a regulatory filing on Monday.

The hike in stake by LIC is subject to RBI's master directions on prior approval for the acquisition of shares or voting rights in private sector banks and on ownership in private sector banks. It is also subject to Sebi regulations Foreign Exchange Management Act among others. The approval is valid for a period of one year, Kotak said.

As of September 30, 2021, LIC held 4.96 percent stake in the bank, as per data on BSE. Kotak Bank shares traded at Rs 2,020 on BSE, up 2.91 percent from the previous close.

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First Published:Nov 29, 2021 2:43 PM IST