Reserve Bank of India (RBI) has allowed state-run insurance giant Life Insurance Corporation of India or LIC to increase its stake in Kotak Mahindra Bank Limited to up to 9.99 per cent, the private sector lender said on Monday.
The insurer has a 4.96 per cent stake as of September 30 and is its fifth largest shareholder, according to Refinitiv data.
A raise to 9.99 per cent would make it the second largest investor in the bank.
While announcing reformed rules on the structure of private sector banks, the RBI had on Friday said that non-promoter share holdings would continue to be capped at 10 per cent for individuals and non-financial institutions.
Meanwhile, LIC is aiming to list on domestic bourses by March next year in an initial public offering (IPO) estimated at $12 billion, set to be the country's biggest.