CNBC-TV18 newsbreak confirmed: M&M buys 3.53% in RBL Bank for Rs 417 crore, open to more

The Mahindra Group has picked up a minority stake in RBL Bank at Rs 197 per share, and as of July 21, 2023, holds a 3.53 percent stake in the bank. In a statement, M&M has said the purchase cost it Rs 417 crores. This development was also confirmed by RBL Bank in its independent statement. CNBC-TV18 had reported earlier in the day, quoting sources that M&M had picked up nearly 4 percent in the bank, and was open to more.

M&M has confirmed its willingness to acquire a larger stake in the bank as well. “We may consider further investment subject to pricing, regulatory approvals and required procedures. However, in no circumstance will it exceed 9.9%,” the company said in its statement. M&M will need RBI approval to hike its stake in RBL Bank beyond 5 percent as well.

The 10 percent limit M&M has flagged off is the upper shareholding limit allowed by RBI regulations to industrial houses in Indian banks. The rules also do not allow industrial houses to become promoters of banks, or grant them eligibility to apply for and hold a banking licence.