Kotak Mahindra Bank announced on Wednesday that it has received approval from the Reserve Bank of India (RBI) to sell a 70% stake in its general insurance arm to Zurich Insurance Company. Last November, Zurich Insurance Company revealed its intention to acquire a 51% stake in Kotak Mahindra General through a mix of capital infusion and share purchase, with plans for an additional acquisition of a 19% stake within three years for Rs 5,560 crore. Kotak Mahindra Bank stated in a regulatory filing that it has now received all the necessary regulatory approvals for the transaction. The shares of Kotak Mahindra Bank closed at Rs 1,718.75 apiece, marking a 4.89% increase over the previous close on the BSE. Kotak Mahindra General Insurance is a wholly owned subsidiary of Kotak Mahindra Bank. According to current regulatory guidelines, a foreign entity can hold up to 74% of an insurance venture in India. Earlier this month, the Competition Commission of India (CCI) approved the acquisition of a 70% stake by Zurich Insurance Company Ltd in the insurance company. The acquirer is a wholly-owned subsidiary of Zurich Insurance Group Ltd, a leading multi-line insurer operating in more than 200 countries and territories.
Kotak Mahindra Bank Receives RBI Approval to Sell 70% Stake in General Insurance Arm to Zurich Insurance
by ramueeswar42
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