RBI has approved SBI Mutual Fund to acquire up to 9.99% stake in Bandhan Bank and RBL Bank within one year.
The holding must not exceed 9.99% at any time, and fresh RBI approval will be required if the stake falls below 5% and is later raised again.
The move comes as RBL Bank is set for a 60% stake acquisition by Emirates NBD, following clearance from the Competition Commission of India.
RBI Clears Up to 9.99% SBI Mutual Fund Holding in Bandhan, RBL Bank
RBI has also clarified that if SBI Mutual Fund’s holding falls below 5% at any point, it will need to seek fresh approval before increasing its stake back to 5% or more
Bandhan Bank
Summary
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The Reserve Bank of India (RBI) has approved SBI Mutual Fund to acquire up to 9.99% stake in Bandhan Bank, according to a regulatory filing by the lender.
The central bank has directed that SBI Mutual Fund’s total holding in the bank must not exceed 9.99% of its paid-up share capital or voting rights at any time. The approval is valid for one year, and if the fund fails to acquire the stake within this period, the permission will stand cancelled.
RBI has also clarified that if SBI Mutual Fund's holding falls below 5% at any point, it will need to seek fresh approval before increasing its stake back to 5% or more.
Point to note: RBI approval is mandatory for investors seeking to hold 5% or more in a bank, making this clearance a key step for SBI Mutual Fund.
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The approval is subject to compliance with various laws and regulations, including the Banking Regulation Act, 1949, the RBI’s 2025 directions on acquisition and holding of shares in commercial banks, the Foreign Exchange Management Act (FEMA), and applicable SEBI rules.
Following the announcement, shares of Bandhan Bank rose 1.81% to close at ₹186.10 on Thursday.
In a similar development, SBI Mutual Fund has also received the RBI’s approval to acquire up to 9.99% stake in RBL Bank within a one-year period. RBL Bank confirmed the approval in its own filing. Its shares, however, closed 0.85% lower at ₹327.00 on Thursday.
The stake approval comes at a time when RBL Bank is undergoing a significant ownership change. Last month, Dubai-based lender Emirates NBD secured clearance from the Competition Commission of India (CCI) to acquire a 60% stake in RBL Bank.
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The deal, expected to be one of the largest foreign acquisitions in India’s financial sector, will be executed through a mix of preferential allotment and an open offer at ₹280 per share.