Mahindra Says May Raise Stake In RBL Bank After Buying 3.53%

Mahindra & Mahindra Ltd. may consider increasing its holding in RBL Bank Ltd. after it acquired a 3.53% stake in the private lender for Rs 417 crore.

"We may consider further investment subject to pricing, regulatory approvals and required procedures," the company said in an exchange filing on Wednesday. "However, in no circumstance will it exceed 9.9%."

According to Reserve Bank of India rules, any shareholder wishing to acquire 5% or more in a bank has to seek the regulator's prior approval.

RBL Bank shares surged to end 7.2% higher on Wednesday amid reports of Mahindra's stake purchase. Mahindra & Mahindra's holding in RBL Bank stood at 3.53% of the total paid-up share capital as of July 21, the lender said in response to the reports.

The bank informed exchanges that there were "no negotiations" to be made under regulatory rules. "The bank is not aware of any information that has not been announced to the exchanges, which could explain the movement in the trading."