I-Pru AMC & I-Pru Life Gets RBI Approval to Acquire a 9.95% Stake in RBL, IDFC FIRST, Equitas SFB, Federal and IndusInd Bank

Current Context: On 28th December 2023, The Reserve Bank of India (RBI) has given its approval to ICICI Prudential Asset Management Company Limited (I-Pru AMC) and ICICI Prudential Life Insurance Company Limited (I-Pru Life) to acquire an “aggregate holding” of up to 9.95% of paid-up share capital or voting rights in RBL Bank Limited.

• The approval has been granted concerning an application submitted by I-Pru AMC and I-Pru Life to RBI.
• As per the RBI letter, I-Pru AMC and I-Pru Life have been accorded the approval to acquire the aforesaid shareholding in RBL Bank within a period of one year, i.e., by December 26, 2024, and to ensure that the aggregate holding in RBL Bank does not exceed 9.95% of the paid-up share capital or voting rights of the bank at all times.
• Further, if the aggregate holding falls below 5%, prior approval of the RBI will be required to increase it to 5% or more of the paid-up share capital or voting rights of the bank.
• As of December 22, 2023, the ICICI group (including ICICI Prudential Life Insurance Co. Ltd and ICICI Prudential Asset Management Company Limited) held 2.08% of the equity share capital of RBL Bank.

Question:

Q.1 What is the maximum percentage of stake that I-Pru AMC and I-Pru Life can acquire in RBL Bank as per the RBI approval?
a. 5%
b. 7.5%
c. 9.95%
d. 10%