Anand Mahindra: Anand Mahindra is preparing to make a big bet in the banking sector, know which bank he is eyeing.
New Delhi: Auto sector giant Mahindra and Mahindra is preparing to play a big bet in the banking sector. Apart from auto, the company’s business is also spread in technology services and non-bank lending. But Mahindra Group is now going to enter the formal banking sector as well. The group has decided to buy about 10 per cent stake in the private sector RBL Bank. The group said on Wednesday that it already holds 3.5 per cent stake in the bank. He bought this stake through secondary market transactions.
After the completion of the deal, Mahindra & Mahindra’s investment fund Maple will hold the largest stake in RBL Bank. RBI has not been in favor of big companies running banks. Recently, an internal working group of RBI had suggested allowing big companies to run banks. But due to heavy opposition, the RBI dropped this proposal. Mahindra Group already has one NBFC Mahindra Financial Services. Mahindra Group said it has bought 3.53 per cent stake in RBL for Rs 417 crore. The bank’s shares have gained 44 per cent in the last one month. Its price was Rs 166 on June 26, which reached Rs 242 on Wednesday.
what the bank said
The group said it may invest more in RBL, subject to pricing, regulatory approvals and necessary procedures. However, in any case this stake will not exceed 9.9 per cent. Earlier it was reported in the media that Mahindra Group may take more than 15 per cent strategic stake in RBL Bank. But the bank issued a clarification on this saying that Mahindra’s stake is only 3.53 per cent. The bank has also said that according to the RBI guidelines, if a shareholder buys five percent or more stake in a bank, then he has to take permission from the banking regulator for that. The bank said that it has not received any such application so far.
