CSB Bank Ltd (NSE:CSBBANK) said India’s central bank has approved ICICI Prudential Asset Management Company Ltd to acquire an aggregate stake of as much as 9.95% in the lender.

According to a stock market filing by CSB Bank, the Reserve Bank of India issued its approval on September 8, 2026, covering purchases equivalent to up to 9.95% of CSB Bank’s paid-up share capital or voting rights.

The permission is subject to conditions set by the regulator. The approval gives ICICI Prudential Asset Management flexibility to build a sizeable holding in CSB Bank, although the disclosure does not state that any shares have already been acquired.

It also does not specify the timing, investment value or route through which the stake may be accumulated. Any acquisition will need to comply with the Banking Regulation Act, 1949, and the Reserve Bank of India’s 2025 directions governing acquisition and ownership of shares or voting rights in commercial banks.

The transaction must also meet requirements under India’s Foreign Exchange Management Act and regulations issued by the Securities and Exchange Board of India. For CSB Bank investors, the proposed potential stake could broaden institutional ownership and provide a signal of investment interest in the lender.

However, the immediate financial impact remains uncertain because no purchase price, transaction schedule or commitment to acquire the full permitted holding was disclosed.