Karur Vysya Bank (KVB) announced on August 23 that the Reserve Bank of India (RBI) has given its approval for SBI Mutual Fund (SBI MF) will acquire up to 9.99 per cent of the paid-up share capital or voting rights of the bank. This strategic move will enable SBI MF to significantly increase its stake in KVB, strengthening its position in the banking sector, according to CNBC-TV18.
Livemint could not independently verify this report.
The approval was communicated vide a letter dated August 23, 2024 from the RBI, in accordance with Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. RBI The decision depends on SBI MFcompliance with various banking and financial regulations, including the Banking Regulation Act 1949, the Share Acquisition Guidelines and the Foreign Exchange Management Act 1999.
Karur Vysya Bank share price closed in the red, down 0.60 per cent, on ₹222.20 on August 23, 2024, according to BSE.
The Bank enjoys a market capitalization of ₹17,779.06 crore, according to BSE.
Karur Vysya Bank share price hit its latest 52-week high on July 31, 2024 in ₹232.75, according to NSE.
Latest developments at SBI MF
KVB also clarified that this approval is subject to certain conditions. SBI MF must acquire the majority stake within one year from the date of the RBI letter. Failure to do so will result in the cancellation of the approval. Further, SBI MF must ensure that its stake in KVB does not exceed 9.99 per cent of the bank’s paid-up share capital or voting rights. If the stake falls below 5 per cent, SBI MF will have to seek fresh approval from the RBI to increase its stake again.
Additionally, SBI Mutual Fund recently announced the launch of a thematic mutual fund i.e. SBI Innovative Opportunities Fund, which opened for public subscription on July 29 and closed on August 12, 2024.
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