A Mahindra Group entity likely picked approximately 4% stake in RBL Bank through open market trades, according to two independent sources with direct knowledge of the developments.
When approached for a comment on the deal, a spokesperson of Mahindra Group said, "no comment." Meanwhile, RBL Bank declined to comment on the matter.
Sources said that Mahindra Group is keen on increasing its stake in RBL Bank to 15-25% if it gets the approvals to be a strategic shareholder of RBL Bank.
A source on condition of anonymity said, “Mahindra Group is excited about synergies with RBL Bank across group entities.”
As per the current RBI rules, industrial houses are allowed to hold a maximum stake of 10% in banks but cannot act as promoters. However, a source mentioned that the Mahindra Group might seek a dispensation from the RBI. It's worth noting that the RBI also prohibits granting a banking license to an industrial house.
Mahindra Group’s bet on the financial services sector is primarily through the group company Mahindra & Mahindra Financial Services.
RBL Bank has had a bumpy last few years, Vishwavir Ahuja stepped down as MD & CEO as RBI did not extend his term. RBI appointed its own official on RBL Bank’s board in December 2021. The sudden exit of Vishwavir Ahuja and RBI’s action had put the lens on the private lender's financial strength and asset quality.
A source from the investor community shared, “We sense that the regulator is looking for a long-term solution for RBL Bank.”
Gopal Jain and Sivakumar Gopalan were appointed as non-executive directors in August 2022.
Barings Asia owns 10% stake in the bank, Gaja Capital, CDC are other investors. Barings Asia-led consortium invested in the bank in 2020.
At 12.44 PM, shares of RBL Bank were trading at Rs 232.35 apiece on the NSE, up over 4 percent from the previous close.
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