Kotak Mahindra Bank on Wednesday announced that the Reserve Bank of India has approved Zurich Insurance Company’s proposed acquisition of 70 per cent stake in Kotak Mahindra General Insurance Company for a total consideration of approximately Rs 5,560 crore.
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“In this regard, we wish to update you that the Reserve Bank of India has, vide its letter dated June 4, 2024 received by the Bank on June 4, 2024, conveyed its approval for the Transaction,” Kotak Mahindra Bank said in a regulatory filing.
Kotak Mahindra General Insurance Company is a 100 per cent subsidiary of Kotak Mahindra Bank.
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Earlier in February, the Bank had announced that Zurich Insurance would acquire a 70 per cent stake in the insurance company for Rs 5,560 crore in a single tranche. In November 2023, Zurich Insurance had said it would first acquire a 51 per cent stake through a combination of fresh growth capital and share purchase, and an additional 19 per cent stake later on.
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In May, Kotak Mahindra Bank had released its fiscal fourth quarter earnings with a profit growth of 18 per cent, driven by healthy loan growth. Net interest income, the difference between interest earned and paid, rose 13 per cent to Rs 6,909 crore in 2023-24 from Rs 6,103 crore in the same quarter of the previous fiscal.
