LIC gets RBI's nod to increase stake in Kotak Mahindra Bank to 9.99%

According to the central bank norms, prior approval of the RBI is required to increase stake in private banks beyond 5%

The Reserve Bank of India (RBI) has granted approval to state-owned insurance behemoth Life Insurance Corporation (LIC) of India to raise its stake in private lender Kotak Mahindra Bank up to 9.99 per cent. 

Currently, the life insurer holds 4.96 per cent in the private lender. In a notification to exchanges, the lender said, “…Kotak Mahindra Bank has received an intimation from LIC stating that the Reserve Bank of India (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...”.