new Delhi. The Reserve Bank of India (RBI) has approved SBI Mutual Fund, along with other SBI group companies, to hold a 9.99% stake in ICICI Bank. ICICI Bank, in a letter to the exchanges, has said that the bank has received a copy of the letter dated March 23, 2022, written by the Reserve Bank of India to SBIFML, in which RBI has written to all other group entities of the SBI Group. SBIFML to acquire up to 9.99 per cent of the paid-up equity capital of the bank.
It is noteworthy that financial institutions, supranational institutions, public sector undertakings have to take permission from RBI before taking more than 5% stake in private sector banks. The Reserve Bank of India had made this rule only last year.
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SBI stake in ICICI Bank
SBI Mutual Fund held 5.72 per cent stake in ICICI Bank at the end of December quarter. In its letter, RBI has advised SBIFML to ensure that the total holding of SBI group entities in the bank remains below 10% of the paid-up equity capital of the bank at all times. ICICI Bank says that SBI Mutual Fund has got this approval for one year and it will end on March 22, 2023.
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Bank regulator RBI had accepted the recommendations of the internal working group only last year. The group was formed to review the proprietary guidelines and corporate structure of private sector banks in India. Among other things, RBI allowed financial institutions, supranational institutions, public sector undertakings to hold 15% stake in private sector banks. However, the central bank had clarified that any such entity would have to take permission from the RBI before taking more than 5% stake in the private sector bank.
Tags: ICICI bank, RBI, SBI Bank
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