Shares of RBL Bank Ltd are poised for a significant market move following the recent approval from the Reserve Bank of India (RBI) allowing ICICI Prudential Asset Management Company Ltd to acquire a cumulative holding of up to 9.95% in the paid-up share capital or voting rights of both RBL Bank and Federal Bank.
Federal Bank disclosed the regulatory nod in a filing to BSE, stating, “On December 28, 2023, the Reserve Bank of India conveyed its approval to ICICI Prudential Asset Management Company Ltd. (ICICI AMC) for obtaining an aggregate holding of up to 9.95% of the paid-up Share Capital or Voting Rights of the Bank, subject to the conditions specified therein.”
The bank, associated with ace investor Rakesh Jhunjhunwala, emphasized that the RBI’s green signal is contingent upon adherence to the relevant provisions of the Banking Regulation Act, 1949, RBI’s Master Direction, and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies issued on January 16, 2023 (as amended from time to time). Additionally, compliance with the provisions of the Foreign Exchange Management Act, 1999, regulations outlined by the Securities and Exchange Board of India, and adherence to other applicable guidelines, regulations, and statutes is imperative.
This development has sparked market interest, and as of 11:09 am, RBL Bank shares were exhibiting a 2.25% uptrend, trading at ₹274.95.
