New Delhi: Life Insurance Corporation of India (LIC) can now be a bigger stakeholder in Kotak Mahindra Bank. The Reserve Bank of India (RBI) has allowed LIC to raise its stake in Kotak Mahindra Bank to 9.99 per cent from the present 4.96 per cent, according to reports by Mint. The approval, however, will be valid for a period of one year. LIC is likely to have its initial public offering (IPO) by the end of the ongoing financial year.Also Read - Budget Glossary 2022: Key Economic Terms Decoded to Understand FM Nirmala Sitharaman's Speech

According to RBI rules, every person or an entity who intends to acquire more than 5 per cent stake in a private bank has to take prior permission from the RBI, the report further stated. On Friday, reportedly, RBI announced that the non-promoter share holdings would continue to be capped at 10 per cent for individuals and non-financial institutions. Also Read - RBI Jobs 2022: RBI Opens Applications For Various Posts. Know How To Check Eligibility Criteria, Other Details Here

According to Mint report, in a notice to stock exchanges, Kotak Mahindra Bank said, “We wish to inform you that Kotak Mahindra Bank Limited (“Bank”) has received an intimation from Life Insurance Corporation of India (“LIC”) stating that the Reserve Bank of India had granted its approval to UC, for increasing its holding in the Bank up to 9.99% of the paid-up equity share capital of Bank.” Also Read - Fact Check: Did You Get An E-mail By RBI Offering Rs 4.62 Crores? Know The Truth Behind It

On Monday, Kotak Mahindra Bank’s shares closed at Rs 2010.05, 2.40 per cent above the previous session, according to bseindia’s website.

Interestingly, LIC is aiming to hit the stock markets by March next year. In an interview given to Bloomberg in October, Finance Minister Nirmala Sitharaman said about the IPO, “We are pushing to have it done.” According to Mint Report, LIC’s IPO will roughly be of USD 12 Billion, making it the country’s biggest IPO till date.