The Reserve Bank of India has approved SBI Mutual Fund to acquire up to 9.99% stake in RBL Bank Limited. Currently holding 1.88%, SBI Mutual Fund must complete the acquisition within one year, while ensuring compliance with RBI, SEBI, FEMA, and other regulatory frameworks.
In a significant development for the Indian banking sector, the Reserve Bank of India (RBI) has granted approval to SBI Mutual Fund to raise its shareholding in RBL Bank Limited to as much as 9.99% of the paid-up capital or voting rights. The approval, dated February 25, 2026, follows an application by SBI Mutual Fund and comes with strict regulatory conditions.
Key Highlights
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RBI approval allows SBI Mutual Fund to acquire up to 9.99% stake in RBL Bank
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The acquisition must be completed within one year from the RBI’s approval letter
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SBI Mutual Fund currently holds 1.88% of RBL Bank’s equity as of February 20, 2026
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Compliance required with Banking Regulation Act, RBI Directions 2025, FEMA, SEBI rules, and other applicable laws
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If SBI Mutual Fund’s holding falls below 5%, prior RBI approval will be needed to raise it back to 5% or above
This move signals growing institutional interest in RBL Bank and highlights RBI’s role in regulating significant shareholding in private sector banks.
Source: RBL Bank Limited disclosure to BSE and NSE