Key Highlights
- RBI approves ICICI Prudential AMC to acquire up to 9.95% stake in The Karur Vysya Bank Ltd.
- Approval letter issued on February 10, 2026 under Regulation 30 disclosure.
- Stake acquisition subject to Banking Regulation Act 1949 and RBI Directions 2025.
- Approval valid for one year and will lapse if major shareholding is not acquired.
- Aggregate holding must not exceed 9.95% and RBI nod required if stake rises above 5% after falling below it.
The Reserve Bank of India has granted approval to ICICI Prudential Asset Management Company Ltd to acquire an aggregate holding of up to 9.95% of the paid-up share capital or voting rights of The Karur Vysya Bank Ltd, according to a regulatory filing submitted to the stock exchanges.
In its communication dated February 10, 2026, the RBI permitted ICICI Prudential Asset Management Company Ltd, along with group entities of ICICI Bank Limited, to increase its stake in The Karur Vysya Bank Ltd, subject to specified regulatory conditions.
The approval has been issued pursuant to an application made by ICICI Prudential Asset Management Company Ltd and falls under the provisions of the Banking Regulation Act, 1949 and the Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025, dated November 28, 2025, as amended from time to time. The acquisition is also subject to compliance with the Foreign Exchange Management Act, 1999, applicable Securities and Exchange Board of India regulations, and other relevant statutory guidelines.
As per the RBI’s conditions, ICICI Prudential Asset Management Company Ltd must complete the acquisition of major shareholding within one year from the date of the approval letter. Failing this, the approval will automatically stand cancelled. Additionally, the aggregate holding, including that of ICICI Bank Limited group entities, must not exceed 9.95% of the paid-up share capital or voting rights of The Karur Vysya Bank Ltd at any time.
The central bank has further stipulated that if the combined shareholding falls below 5% at any point, prior approval from RBI will be required before increasing it to 5% or more again.
The bank also clarified that a similar approval had earlier been granted on December 29, 2023 under comparable terms and conditions. The fresh approval has been issued following the expiry of the previous authorisation.