RBI asks Kotak Mahindra Bank to halve promoter stake

[caption id=“attachment_359869” align=“alignleft” width=“380” caption=“Kotak will also have to comply with any new prescription on promoter’s holding. Reuters”] [/caption]

The Reserve Bank has asked Uday Kotak-led Kotak Mahindra Bank to more than halve promoters’ holding to 20 percent by March, 2018 from the present 45.21 percent.

“The RBI has advised the bank that the promoters’ shareholding, now at 45.21 percent, be brought down to 20 percent by March 31, 2018,” a bank statement said.

Additionally, the RBI has also indicated that it will take a view on further dilution to 10 percent over two years after that date, it said.

Mumbai-based private sector lender will also have to comply with any new prescription on promoter’s holding slated to come up in the new bank guidelines, the statement said.

PTI