RBL Bank has received approval from the Reserve Bank of India (RBI) to acquire an indirect stake in Utkarsh Small Finance Bank Limited (USFBL), following the proposed amalgamation of Utkarsh Coreinvest Limited (UCL) with USFBL.
As per the disclosure dated August 6, 2025, RBL Bank clarified that it does not currently hold any direct shares in USFBL. However, it holds an 8.64% stake in UCL as of March 31, 2025. Based on the share exchange ratio under the proposed amalgamation, this holding will result in RBL Bank owning more than 5% of USFBL’s paid-up equity share capital after the merger.
Since acquiring more than 5% in a banking company requires prior regulatory clearance, RBL Bank had submitted an application to RBI. The approval, granted on August 5, is subject to several conditions, including compliance with the Banking Regulation Act, 1949, RBI’s Master Direction on shareholding in banking companies (dated January 16, 2023), FEMA regulations, SEBI guidelines, and other applicable laws.
The RBI has also specified that RBL Bank’s aggregate holding in USFBL must remain below 10% of the paid-up share capital or voting rights at all times.
