There has been much media speculation about the rationale of the Mahindra Group in not just picking up a sizeable 3.53 percent stake in RBL Bank, but announcing it to the public after the deal was done. Of course, the mandatory disclosures on public shareholding in a listed company required this. But if this was just a secondary market transaction play, the automotive-to-technology conglomerate might not want to make a splash of it.
There are some things that stand out which make RBL Bank a good bank to acquire: It has the potential, but it is expected to play out over a long period. It is one of the few mid-sized banks that has a diversified institutional shareholding and is not held by a promoter group or family.