The Reserve Bank on Wednesday has given its approval to SBI Mutual Fund (SBI MF) for acquiring up to 9.99% of the paid-up share capital or voting rights of Karur Vysya Bank Ltd (KVB).
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If SBI MF fails to acquire major shareholding within a period of one year from the date of RBI’s letter, this approval shall stand cancelled, the private sector lender said in a regulatory filing.
Besides, SBI MF must ensure that the aggregate holding in the bank does not not exceed 9.99% at all times. Further, if the aggregate holding falls below 5%, prior approval of RBI will be required to increase it to 5% or more of the paid-up share capital or voting rights of KVB.
KVB, meanwhile, announced the opening of four branches, of which three are in Tamil Nadu and one in Bengaluru. With this, the total number of branches has increased to 831.