RBI nod for Kotak Mahindra Bank promoter stake dilution

New Delhi (IANS) Kotak Mahindra Bank on Wednesday said it has got the final nod from RBI on the promoters' stake dilution plan.

"Reserve Bank of India has granted its final approval vide its letter February 18, 2020 in the matter relating to dilution of promoters' shareholding in the Bank," Kotak Mahindra Bank said in a filing.

Shares of Kotak Mahindra Bank gained over 2 per cent to touch a 52-week high of Rs 1,739.95 in early trade on Wednesday after the Reserve Bank of India (RBI) approval. As per its plan, promoters' voting rights in the bank will be capped to 20 per cent of paid-up voting equity share capital until March 31, 2020 and the same will be capped to 15 per cent from April 1, 2020 onwards.

The stock touched an intra-day record high of Rs 1,739.95, rising nearly 34 per cent in the last one year. It was quoting at Rs 1,712.10, up Rs 21.05, or 1.24 per cent on the BSE at 9.33 a.m. Promoters' shareholding in the bank will be reduced to 26 per cent within six months from the date of final approval of the RBI, thereafter the promoters will not purchase any further paid up voting equity shares' of the bank till the percentage of promoters' shareholding reaches 15 per cent or such higher percentage as may be permitted by RBI from time to time, the bank stated in its plan.

The promoters will be entitled to purchase paid-up voting equity shares of the bank up to 15 per cent of the paid-up voting equity share capital of the bank or such higher percentage as may be permitted in the future, and exercise voting rights on such shares, the bank said.

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