RBL Bank shares jumped 6%, Federal Bank 2% today. Here's why

Shares of RBL Bank climbed 6 per cent while those of Jhunjhunwala-backed Federal Bank advanced 3 per cent in Friday's trade after ICICI Prudential Asset Management Company Ltd and ICICI Prudential Life Ltd got the RBI approval to increase stakes to 9.95 per cent of the paid-up share capital or voting rights in the two lenders.

Rekha Jhunjhunwala-backed Federal Bank saw its shares rising 2.28 per cent to Rs 159 on BSE. The Jhunjhunwala family owned 3.03 per cent stake in this bank, as on September 30. RBL Bank shares climbed 5.67 per cent to hit a high of Rs 284.20 on BSE.

RBL Bank in a filing to BSE said the RBI has given its approval to ICICI Prudential Asset Management Company Ltd and ICICI Prudential Life Insurance Co acquire the major shareholding in the bank within a period of one year, by December 26, 2024. The RBI has asked ICICI entities to ensure that the aggregate holding in the RBL bank does not exceed 9.95 per cent of the paid-up share capital or voting rights of the bank at all times.

"Further in the event, if the aggregate holding falls below 5%, prior approval of RBI will be required to increase it to 5% or more of the paid-up share capital or voting rights of the Bank," RBL Bank said," RBL Bank said.

On the other hand, Federal Bank said said it received an intimation from the RBI saying the apex bank has accorded its approval to ICICI Prudential Asset Management Company for acquiring aggregate holding of up to 9.95 per cent of the paid-up share capital or voting rights of the bank, which would be subject to the certain conditions.