RBI clears plan for dilution of promoters' shareholding in Kotak Mahindra Bank
Mumbai (Maharashtra) [India], Feb 19 (ANI): Kotak Mahindra Bank said on Wednesday that the Reserve Bank of India (RBI) has granted final approval on the dilution of promoters' shareholding in the bank.
ANI
Feb 19, 2020 12:26 IST
Mumbai (Maharashtra) [India], Feb 19 (ANI): Kotak Mahindra Bank said on Wednesday that the Reserve Bank of India (RBI) has granted final approval on the dilution of promoters' shareholding in the bank.
This marks the end of a 13-month old dispute after the RBI had asked bank's Managing Director and Executive Chairman Uday Kotak to pare his stake to 15 per cent as part licensing guidelines.
On January 30, the bank said RBI had agreed to its plan to cut promoter stake to 26 per cent from the current 29.96 per cent over the next six months.
The central bank said that after the stake reduction, the promoters will not purchase any further paid-up voting equity shares of the bank till the percentage of their shareholding reached 15 per cent of the bank or such higher percentage as may be permitted by the RBI in future.
"Further to our intimation dated January 30, the RBI has granted its final approval vide its letter dated February 18 in the matter relating to dilution of promoters' shareholding in the bank," it said in regulatory filings at stock exchanges.
According to RBI norms, a bank needs to bring down its promoter shareholding to 40 per cent in the first three years after starting operations. After that, the bank needs to bring down its promoter shareholding to 20 per cent in 10 years and 15 per cent in 15 years. (ANI)
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