The Reserve Bank of India (RBI) has granted conditional approval to SBI Mutual Fund to increase its aggregate shareholding in RBL Bank Limited to a maximum of 9.99% of the paid-up share capital or voting rights. This approval is effective for one year from the date of the letter, dated February 25, 2026. As of February 20, 2026, SBI Mutual Fund held an existing stake of 1.88% in the bank.
Regulatory Approval Secured for Stake Acquisition
RBL Bank announced that it has received formal approval from the Reserve Bank of India (RBI) allowing SBI Mutual Fund to acquire a larger ownership stake. The approval, conveyed via letter on February 25, 2026, permits SBI Mutual Fund to acquire an aggregate holding of up to 9.99% of the bank’s paid-up share capital or voting rights.
Current Holding and Acquisition Limits
It is noted that prior to this approval, SBI Mutual Fund held an existing equity stake of 1.88% in RBL Bank as of the closing date of February 20, 2026. The RBI approval mandates that the aggregate holding must not exceed 9.99% at any time.
Conditions and Future Action
The approval is subject to SBI Mutual Fund adhering to various statutory requirements, including the Banking Regulation Act and directions issued by the RBI concerning the acquisition and holding of shares. Furthermore, if the aggregate holding of SBI Mutual Fund were to fall below 5% at any point, a fresh prior approval from the RBI would be required before increasing the stake back to 5% or more.
The approval grants SBI Mutual Fund a window of one year from the date of the RBI Letter to complete the acquisition process to reach the approved threshold.
Source: BSE
