Shares of RBL Bank jumped over 6 per cent to hit their new 52-week high of Rs 238.30 on the BSE following a media report that Mahindra Group has likely acquired a 4 per cent stake in the private lender. The report prompted strong buying interest in the stock, with more than 2.80 crore shares changing hands around 1:15 pm.
However, Mahindra & Mahindra shares were trading nearly 2 per cent down at Rs 1,540.30 per share around this time.
According to a report by CNBC TV18, the transaction is likely to have happened through the open market as part of the Mahindra Group’s plans to increase it strategic stake to 15–25% in the Mumbai-based bank.
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The automobile-to-hospitality conglomerate sees synergies in buying a strategic stake in RBL Bank. Mahindra Group and RBL Bank did not comment on the report, according to CNBC.
Mahindra Group’s plans will require approval from the Reserve Bank of India (RBI). According to RBI regulations, industrial houses can own a maximum 10 per cent stake in banks but can’t be their promoters. The central bank does not grant a banking licence to an industrial house.
Following the development, the RBL Bank stock rallied nearly 6 per cent to touch a 52-week high of Rs 238.30 on the BSE.
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In the April-June quarter of FY24, the private lender reported 43.2 per cent growth in net profit to Rs 288 crore, on the back of lower provisions and higher interest income. On the sequential basis, net profit rose 30 per cent.
Total revenue increased 18 per cent year-on-year (YoY) to Rs 1,932 crore from Rs 1,641 crore in Q1 FY23.
