Kotak cuts stake in line with RBI norms

Private sector lender Kotak Mahindra Bank on Monday said it has acheived compliance with the RBI norms in respect of dilution of promoter Uday Kotak's shareholding.

The bank was required to bring down the promoter's shareholding to 26 per cent.

"In relation to the matter of dilution of promoters' shareholding in the bank, 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 on August 10, 2020, within the timeline prescribed by the RBI," the bank said in a regulatory filing.

Earlier in February this year, the bank had informed that the RBI had given its approval in relation to dilution of promoters' shareholding in the bank.

Before this, on January 30, 2020, billionaire Uday Kotakled lender and the banking regulator RBI had reached an agreement over the promoter's stake dilution, as the matter had reached the court.

As a consequence to that, Kotak Mahindra Bank had also informed that it was moving towards withdrawing a case it had filed against the RBI in the Bombay High Court over the matter.

According to the agreement reached between the RBI and Kotak Mahindra Bank, promoters' voting right in the bank was to be capped at 20 per cent of paidup voting equity share capital until March 31, 2020.

Afterwards, promoters' voting right in the bank was to be capped at 15 per cent from April 1, 2020, onwards and promoters' shareholding in