New Delhi, Nov 29 (IANS): Life Insurance Corporation (LIC) has received approval from the Reserve Bank of India (RBI) to increase its stake in the Kotak Mahindra Bank.
The approval is to raise LIC's stake in the bank up to 9.99 per cent from the current 4.96 per cent it has in the private lender.
Prior approval is required from the central bank to make an acquisition in any private banks of more than 5 per cent stake.
"Kotak Mahindra Bank Ltd 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 bank...," the lender informed exchanges on Monday.
The approval of the central bank will be valid for one year.
On Monday, shares of the Kotak Mahindra Bank settled 2.39 per cent higher from the previous close at Rs 2,011.