SBI Mutual Fund received approval from the RBI for acquiring up to a 9.99% stake in Karur Vysya Bank Ltd.
The approval has been granted with reference to the application made by SBI Mutual Fund to the Reserve Bank of India. The approval will be cancelled if SBI MF fails to acquire a major shareholding within a year from the date of the letter, the bank said in an exchange filing on Wednesday.
The aggregate holding by SBI MF in the bank should not exceed 9.99% of the paid-up share capital. If the aggregate holding falls below 5%, prior approval of the RBI will be required to increase it to 5% or more of the paid-up share, it said.
The bank's total business was approximately Rs 1.54 lakh crore as of Sept. 30, with a deposit base of Rs 83,068 crore and advances of Rs 70,448 crore. It has recently opened three new branches in Tamil Nadu and one in Karnataka, taking the total branch network to 831.
Shares of Karur Vysya Bank closed 1.32% higher at Rs 153.30 apiece on the NSE, as compared with a 1.04% advance in the benchmark Nifty 50.
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