NEW DELHI: Kotak Mahindra Bank on Wednesday said it has received the RBI approval to sell a 70 per cent stake in its general insurance arm to Zurich Insurance Company.
In November last year, Zurich Insurance Company announced plans to acquire a 51 per cent stake in Kotak Mahindra General through a combination of capital infusion and share purchase, followed by a subsequent acquisition of an additional stake of 19 per cent within three years from the initial acquisition for Rs 5,560 crore.
"...the Reserve Bank of India has, vide its letter dated June 4, 2024... conveyed its approval for the transaction. All regulatory approvals required for the transaction have now been received...," Kotak Mahindra Bank said in a regulatory filing. Shares of Kotak Mahindra Bank closed at Rs 1,718.75 apiece, up 4.89 per cent over the previous close on the BSE.
Kotak Mahindra General Insurance is a 100 per cent subsidiary of Kotak Mahindra Bank. As per the current regulatory guidelines, a foreign entity can own up to 74 per cent in an insurance venture in India.
Earlier this month, the Competition Commission of India (CCI) approved the acquisition of a 70 per cent stake by Zurich Insurance Company Ltd in the insurance company.
The acquirer is a wholly-owned subsidiary of Zurich Insurance Group Ltd (Zurich Insurance Group). It is a leading multi-line insurer serving people and businesses in more than 200 countries and territories.