India's CSB Bank promoter gets RBI nod to retain 26% stake in lender

CSB Bank

30/11/2023 16:10

BENGALURU, Nov 30 (Reuters) - The promoter of India's
CSB Bank  CSBB.NS  has received approval from the Reserve Bank
of India to retain a 26% stake in the lender, instead of 15% as
advised by the central bank earlier, CSB said on Thursday.
    FIH Mauritius Investments Ltd (FIHM), which currently holds
a 49.72% stake in the Thrissur, Kerala-based bank according to
BSE data, shall bring down its shareholding within 15 years from
the date of completion of investments.
    The RBI earlier required promoters of banks to reduce their
shareholding to 15% to ensure these institutions are widely
held.
    However, following a legal battle with Uday Kotak, the
promoter of Kotak Mahindra Bank  KTKM.NS , the regulator
permitted promoters to retain up to 26% in banks.
    Among others, IndusInd Bank's  INBK.NS  promoters have
benefited from the rule change, after they were given regulatory
approval earlier in the year to raise their stake to 26% in the
bank.

    
    

 (Reporting by Meenakshi Maidas in Bengaluru; Editing by Tasim
Zahid)
 ((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))