Indian private lender Kotak Mahindra Bank has reportedly signed an agreement to sell its 8.6% stake in Airtel Payments Bank to Bharti Enterprises.
The lender, as per several media reports, has signed a share purchase agreement to divest 200 million equity shares in Airtel Payments Bank for approximately $40.54m (INR3bn).
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As per Kotak Mahindra Bank’s regulatory filing, it had acquired these shares for $27.03m (INR2bn) in tranches during 2016 and 2017.
The deal is expected to close by 15 September 2021 and does not require any regulatory approval.
Additionally, Bharti Enterprises has also received a nod from the Reserve Bank of India for the proposed deal.
Airtel Payments Bank, which was established in 2010 and began operations in 2016, reported a turnover of $84.76m for the financial year 2020.
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By GlobalDataIn other payment banking news, Fino Payments Bank is reportedly exploring options to merge with its holding company Fino Paytech.
The reverse merger is expected to begin once Fino Payments Bank completes its initial public offering (IPO) by December this year.
It plans to raise approximately $178.08m (INR13bn) through its IPO, which includes $41.1m OFC components.
Payment banks are allowed to take deposits, offer remittance services, sell insurance and mutual funds, offer internet banking, and issue ATM/debit cards.
However, they are restricted from lending to customers and issuing credit cards, unlike traditional banks.
