Private lender Kotak Mahindra Bank Limited on Monday informed exchanges that the Life Insurance Corporation of India (LIC) has been granted permission from the Reserve Bank of India (RBI) to increase stake in the bank up to 9.99 per cent. This will be subjected to 'compliance', the statement from the bank read.  

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As of September 30, 2021 shareholding data on BSE, LIC holds 4.96 per cent stake in the bank. Once finalized, LIC's stake in the company will go up to 9.99 per cent.  

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"We wish to inform you that Kotak Mahindra Bank Limited ("Bank") has received an intimation from Life Insurance Corporation of India (LIC) stating that the Reserve Bank of India had granted its approval to UC, for increasing its holding in the Bank up to 9.99% of the paid-up equity share capital of Bank," the banks said in a filing to the exchange.

The hike in stake by LIC is subject to RBI's master directions on prior approval for 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.

Post regulatory filing by the bank, Kotak Mahindra shares ended Monday's session nearly 3 per cent higher to Rs 2020.20, a gain of Rs 57.25 or 2.92per cent.  

Kotak Mahindra share have clocked 52-week High of Rs 2,252.45 on October 27, 2021 and the shares touched year low of Rs 1,627.25 on BSE intraday trade on July 7, 2021.