The Reserve Bank of India (RBI) has granted conditional approval to ICICI Prudential Asset Management Company Limited, along with its group entities from ICICI Bank Limited, to acquire an aggregate holding of up to 9.95% of Federal Bank’s paid-up share capital or voting rights. This strategic approval was conveyed to the bank via an intimation dated February 11, 2026. The acquisition is subject to adherence to all prevailing regulations under the Banking Regulation Act and other applicable financial statutes.
Regulatory Approval Granted for Major Shareholding
Federal Bank announced on February 11, 2026, that it has received formal approval from the Reserve Bank of India (RBI) concerning a significant shareholding transaction. The approval sanctions the acquisition of an “aggregate holding” of up to 9.95% of the bank’s paid-up share capital or voting rights.
Beneficiaries of the Approval
The approved entities are ICICI Prudential Asset Management Company Limited, together with associated group entities of ICICI Bank Limited. This landmark decision allows the ICICI group to significantly increase its passive investment stake in Federal Bank, subject to the terms outlined by the regulator.
Compliance Mandates
The RBI’s authorization is expressly conditional. The acquiring entities must strictly comply with all provisions stipulated in the Banking Regulation Act, 1949, and the directions issued by the RBI regarding the Acquisition and Holding of Shares or Voting Rights in Commercial Banks, dated November 28, 2025. Further adherence to the Foreign Exchange Management Act, 1999, and all relevant mandates from the Securities and Exchange Board of India (SEBI) is also required.
The filing was submitted by Samir P Rajdev, Company Secretary, acknowledging the receipt of this crucial regulatory clearance.
Source: BSE
