Mahindra & Mahindra confirms picking up 3.53% stake in RBL Bank for Rs 417 crore

27 Jul 2023 , 09:47 AM

Mahindra & Mahindra (M&M) announced that it has acquired a 3.53% interest in private lender RBL Bank for Rs 417 crore.

‘We have acquired a 3.53% stake in RBL Bank as an investment at a cost of Rs 417 crore,’ said the company in a regulatory filing.

M&M also stated that ‘further investment may be considered subject to pricing, regulatory approvals, and required procedures. However, the business added that ‘under no circumstances will it exceed 9.9%.’

The Mahindra Group invests predominantly in the financial services sector through its group company, Mahindra & Mahindra Financial Services.

RBL Bank faced a difficult few years. Vishwavir Ahuja resigned as MD & CEO in December 2021 after the Reserve Bank of India (RBI) declined to extend his term. During the same month, the central bank appointed its official to the bank’s board.

Following this development, Mahindra & Mahindra’s counter was trading 4.72% lower at Rs 1,472.05 per piece, against the previous close of Rs 1,544.85 on NSE.

On the other hand, the share of RBL Bank was trading 0.29% lower at Rs 238.50, against the previous close of Rs 239.20 on NSE.

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