The Reserve Bank of India (RBI) has given approval to SBI Mutual Fund to acquire up to 9.99% stake in Induslnd Bank.

The RBI has asked the fund house to acquire the shareholding in the bank within a period of one year i.e. by 10 October 2024. 

SBI Mutual Fund must ensure that the aggregate holding in the bank does not exceed 9.99% of the paid-up share capital or voting rights of the bank at all times.

The approval granted by the RBI is subject to the conditions mentioned therein including compliance with the relevant provisions of Banking Regulation Act, 1949, and RBI’s master direction and guidelines on acquisition and holding of shares or voting rights in banking companies, among other norms.

In May, the RBI had allowed SBI Funds Management, a joint venture between State Bank of India and France’s Amundi, to acquire a 9.99% stake in HDFC Bank and had recommended the company do so within the next six months.