RBI asks Kotak Bank to cut promoter stake to 20% by FY17-18

While ordering the bank to cut its promoter stake by 20% by March 2018, the apex bank has indicated that it will take a view on further dilution to 10% over two years after that date

Mumbai: The Reserve Bank (RBI) has asked Uday Kotak-led Kotak Mahindra Bank to more than halve promoters' holding to 20% by March, 2018 from the present 45.21%, reports PTI.

"The RBI has advised the bank that the promoters' shareholding, now at 45.21%, be brought down to 20% by 31 March 2018," a bank statement said here.

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

The Mumbai-headquartered 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.

Kotak Mahindra Bank scrip shed 1.26% to close at Rs572.40 apiece on the BSE, while the 30-share Sensex gained 0.36%.
 

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