The Reserve Bank of India (RBI) has allowed the state-owned insurer Life Insurance Corporation of India or LIC Kotak Mahindra Bank Ltd to increase its stake to 9.99 per cent, a private sector lender said on Monday.
According to Refinitiv data, the insurer holds 4.96 per cent stake as of September 30 and is its fifth largest shareholder.
If raised to 9.99 per cent it will become the second largest investor in the bank.
While announcing reform rules in the structure of private sector banks, the Reserve Bank on Friday said non-promoter shares for individuals and non-financial institutions would remain at 10 per cent.
Meanwhile, the LIC aims to list on the domestic stock exchanges by March next year, making it the largest in the country in terms of initial public offering (IPO) of $ 12 billion.