Mahindra Group Acquires 4% Stake in RBL Bank

26 Jul 2023 , 02:19 PM

A Mahindra Group entity has acquired approximately 4% stake in RBL Bank through open market trades, according to two reliable sources with direct knowledge.

As per information, the Mahindra Group spokesperson declined to comment on the deal, while RBL Bank also chose not to provide any statement.

The group is interested in increasing its stake in RBL Bank to 15-25%, contingent on obtaining approvals to be a strategic shareholder.

Mahindra Group sees potential synergies with RBL Bank across various group entities, as per an anonymous source.

Current RBI rules allow industrial houses to hold a maximum of 10% stake in banks but prohibit them from acting as promoters. Mahindra Group may seek a dispensation from RBI to pursue its plans for RBL Bank.

The group’s primary interest in financial services lies with Mahindra & Mahindra Financial Services.

The acquisition of a 4% stake by Mahindra Group indicates a potential strategic investment, subject to regulatory approvals and further decisions by both parties. Market watchers are keen to observe how the situation evolves and its impact on RBL Bank’s future.

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