According to the rules of RBI, any entity that wants to acquire 5% or more stake in a private bank, it is necessary to take the permission of RBI.
The Reserve Bank of India (RBI) has approved SBI Fund Management to hold a 9.99% stake in ICICI Bank along with all other SBI Group companies. In a letter to SBI Funds Management, RBI has approved SBI Fund Management along with all other group entities of SBI Group to acquire up to 9.99 per cent of the paid-up equity capital of the bank, ICICI Bank said in a notification to the stock exchanges. given.
Explain that according to the rules of RBI, any institution, which wants to acquire 5% or more stake in a private bank, it is necessary to take the permission of RBI.
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presently the same share
The mutual fund currently holds 28.2% stake in ICICI Bank and SBI Mutual Fund holds 5.72%. RBI has asked the company to ensure that the total holding of SBI group companies in ICICI Bank remains below 10% of the paid-up equity capital of the bank at all times. This approval is valid for a period of one year i.e. till 22 March 2023.
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Permission required before taking more than 5% stake
RBI allowed financial institutions, supranational institutions, public sector undertakings to hold 15% stake in private sector banks. However, the central bank had clarified that any such entity would have to take permission from the RBI before taking more than 5% stake in the private sector bank.
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