New Delhi: Private Bank Indusind Bank on Friday said the RBI has given approval to life insurance companies to increase ownership in banks to almost 10 percent.
The bank has accepted the intimacy of the RBI on December 9, 2021, that it has given its approval to Life Insurance Corporation (LIC), Bank shareholders to obtain up to 9.99 percent of the total capital placed and deposited from the Bank, the Bank said in the submission of regulations on the exchange effect.
State-managed insurance companies apply 4.95 percent of the total bank capital placed and paid banks.
RBI’s approval is subject to compliance with the direction of the previous agreement for the acquisition of shares and choosing the private sector bank and regulations and each guide or regulation.
Reserve Bank last month has received most of the recommendations of its working group on ownership of the private sector bank company, allowing ownership of un-controlled promoters in the first five years of operation.
It is recommended to hiking equal to 26 percent after 15 years from 15 percent which still exists and also new capital requirements.
This is considered beneficial for banks such as the Mahindra Bank and Indusind Bank boxes.
The agreement applies for a period of one year I., until December 8, 2022, said the bank.
Indusind Bank shares rose slightly at RS 947 in BSE in the afternoon trade.