Private sector lender Kotak Mahindra Bank has received final approval from the Reserve Bank of India to reduce promoter stake to 26%, the bank informed stock exchanges.
Promoter stake in the bank, which is now at 29.96%, has to reduce to 26% within six months of RBI’s approval.
“Further to our intimation dated January 30, 2020, please note that the Reserve Bank of India has granted its final approval... vide its letter dated February 18, 2020 in the matter relating to dilution of promoters’ shareholding in the bank,” the bank said.
According to the new formula agreed to by both the bank and the regulator, and which was communicated to the exchanges on January 30, the voting rights of the promoter will be capped at 15% from April 1.The bank will get at least six months to reduce promoter stake to 26% from the date of the RBI’s final approval.
There is no compulsion for the bank to reduce promoter stake to 15%, as previously envisaged.