(Reuters) -India's Mahindra and Mahindra has sold its entire 3.5% stake worth 6.78 billion rupees ($77.1 million) in lender RBL Bank, the automaker said on Thursday.

The stake sale represents a 62.5% gain on the initial investment of 4.17 billion rupees, it said.

($1 = 87.8950 Indian rupees)

(Reporting by Urvi Dugar in Bengaluru; Editing by Rashmi Aich)