RBI gives final nod to Kotak Mahindra Bank for reducing promoters’ stake to 26%

Kotak Mahindra Bank has stated that it has received the nod from the RBI for reducing promoters’ stake in the bank to 26%.

The bank has been asked by the regulator to reduce promoters’ shareholding to 20% of paid-up capital by 31 December, 2018, and 15% by 31 March, 2020

“Further to our intimation dated 30th January 2020,…the Reserve Bank of India has granted its final approval vide its letter dated 18th February 2020 in the matter relating to dilution of promoters’ shareholding in the bank,” Kotak Mahindra Bank said in a regulatory filing.

“Our board of directors has resolved to abide by the above. The bank is withdrawing writ petition No. 3542 of 2018 filed by it in the High Court of Bombay,” Kotak Mahindra Bank had said in another filing.