RBI permits ICICI Pru Mutual Fund to acquire 9.95 per cent stake in Karur Vysya Bank

Karur Vysya Bank on Friday said the Reserve Bank of India has accorded approval to ICICI Prudential Asset Management Company Ltd (ICICI AMC) for acquiring aggregate holding of up to 9.95 per cent of the paid-up share capital or voting rights of The Karur Vysya Bank Ltd.

The approval has been granted with reference to the application made by ICICI AMC to RBI, Karur Vysya Bank said in a regulatory filing.

The approval granted by the Reserve Bank of India (RBI) is subject to the compliance with 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 dated January 16, 2023, it said.

If ICICI AMC fails to acquire major shareholding within a period of one year from the date of RBI’s letter, this approval shall stand cancelled. ICICI AMC must ensure that the aggregate holding in the Bank doesn’t exceed 9.95 per cent of the paid-up share capital or voting rights of the Bank at all times. Further if the aggregate holding falls below 5 per cent, prior approval of RBI will be required to increase it to 5 per cent or more of the paid-up share capital or voting rights of the Bank, it added.