Approval from RBI:IndusInd Bank to double stake in hedge fund Route One to 10%

• Root One Investment Company currently holds about 4.96% stake in IndusInd Bank
• The bank’s board on July 5 approved the proposal to increase the stake in Route One

IndusInd Bank on Friday said the Reserve Bank of India (RBI) has allowed one of its existing shareholders, Route One Investment Company LP USA (ROIC), to increase its stake in the bank to 10 per cent. Route One currently holds about 4.96 percent stake in the bank. Shares of the bank rose 1.61 per cent to close at Rs 522.20 on the BSE.

Approval has to be taken from RBI to increase stake in private bank

IndusInd Bank said that ROIC had sought RBI approval before increasing its stake in the bank. This approval was sought under the Master Direction of RBI in case of approval before buying shares of ROIC private bank. The bank’s board approved a proposal to increase the stake of Route One at a meeting of 5 July 2020.

Also Read: Investment in Mutual Fund through SIP preferred, in the first six months of 2020, more than Rs 50,000 crore

Bank shares hit a high of Rs 536.10.

IndusInd Bank said that RBI has also forwarded a copy of the letter sent to ROIC to the bank. In this letter, ROIC has been allowed to raise up to 10% of the paid-up voting equity capital of IndusInd Bank. The bank’s shares rose 1.61 per cent to close at Rs 522.20 on the BSE. Bank shares made a low of Rs 500 and an upside of Rs 536.10 in day trading.