The country’s largest insurer Life Insurance Corporation of India (LIC) has got approval from the Reserve Bank of India (RBI) to raise its holding in private lender IndusInd Bank to 9.99 per cent from the existing 4.95 per cent.
“We are pleased to inform you that 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 per cent of the total issued and paid-up capital of the Bank, to acquire upto 9.99 per cent of the total issued and paid-up capital of the Bank,” IndusInd Bank said in a regulatory exchange filing on Friday.
The investment will be 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 (SEBI), the Foreign Exchange Management Act, 1999 and any other guidelines/regulations and applicable laws, it said.
The central bank’s approval is valid for a period of one year, i.e. up to December 8, 2022.