New Delhi, Nov 29 (PTI) Shares of Kotak Mahindra Bank on Monday gained nearly 3 per cent as insurance behemoth LIC will raise its stake in the private sector lender to nearly 10 per cent.

The stock jumped 2.92 per cent to close at Rs 2,020.20 on the BSE. During the day, it gained 4.10 per cent to Rs 2,043.55. On the NSE, it climbed 2.81 per cent to close at Rs 2,019.60.

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LIC will raise its stake in Kotak Mahindra Bank to nearly 10 per cent, after receiving grant of approval from the Reserve Bank of India (RBI).

Kotak Mahindra Bank (Kotak) said it has received an intimation from LIC regarding the same.

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"Kotak Mahindra Bank has received an intimation from Life Insurance Corporation of India (LIC) stating that the Reserve Bank of India had granted its approval to LIC, for increasing its holding in the bank up to 9.99 per cent of the paid-up equity share capital of the bank," Kotak said in a regulatory filing on Monday.

The hike in stake by LIC is subject to RBI's master directions on prior approval for acquisition of shares or voting rights in private sector banks and on ownership in private sector banks.

It is also subject to Sebi regulations Foreign Exchange Management Act among others.

The approval is valid for a period of one year, Kotak said.

As of September 30, 2021, LIC held 4.96 per cent stake in the bank, as per data on BSE.

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