CSB Bank promoter gets RBI approval to retain 26% stake

1 Dec 2023 , 11:26 AM

The promoter of India’s CSB Bank has received permission from the Reserve Bank of India to keep a 26% stake in the lender, rather than the 15% suggested by the central bank before, the lender said on Thursday.

According to BSE statistics, FIH Mauritius Investments Ltd (FIHM), which now owns 49.72% of the Thrissur, Kerala-based bank, must reduce its position within 15 years after investment completion.

The RBI previously mandated bank founders to decrease their shareholding to 15% in order to guarantee that these instructions are complied with.

However, after a court battle with Uday Kotak, the promoter of Kotak Mahindra Bank, the regulator allowed promoters to keep up to 26% of bank shares.

Among those who have profited from the regulation change are the promoters of IndusInd Bank, who were granted regulatory clearance earlier this year to increase their ownership in the bank to 26%.

At around 11.24 AM, CSB Bank was trading 0.35% higher at Rs 389.45, against the previous close of Rs 388.10 on NSE. The counter touched an intraday high and low of Rs 395 and Rs 387.05, respectively.

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