Kotak Bank confirms complying with promoter stake norms

MUMBAI: Kotak Mahindra Bank Ltd on Monday confirmed that it has complied with the promoter shareholding norms prescribed by the Reserve Bank of India (RBI) within the prescribed timeline.

“Further to our intimation dated January 30, 2020 and February 19, 2020 in relation to the matter of dilution of promoters’ shareholding in the bank, please note that the bank has achieved compliance with the promoter shareholding reduction requirement set out in the Reserve Bank of India’s letters dated January 29, 2020 and February 18, 2020 as on August 10, 2020, within the timeline prescribed by RBI,” the bank said in a regulatory filing to the stock exchanges.

Uday Kotak’s stake in Kotak Bank stood at 25.82 per cent as on June 30, and the total promoter shareholding was at 26.07 per cent as of that date.

RBI has asked Kotak in January to cut his stake in the bank by 4 per cent towards August as agreed before, against the 15 per cent reduction the regulator was wanting from the bank  before.

Nevertheless, RBI capped his voting rights at 15 per cent in two steps, first at 20 per cent, which was further brought down to 15 per cent – much lower than his actual holding.

On August 2, 2019, Kotak Mahindra Bank had completed an issue of non-convertible perpetual non-cumulative preference shares (PNCPS) to bring down the promoter’s holding to 19.7 per cent.

 

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