Private sector Kotak Mahindra Bank on Wednesday said the Reserve Bank has granted its final approval to reduce promoters’ stake in the bank to 26 per cent.
On January 30, the bank had informed about the RBI’s in-principle acceptance to reducing promoters’ shareholding to 26 per cent of the paid-up voting equity share capital (PUVESC) of the bank within six months from the date of final approval of the regulator.
The RBI had asked the bank to cut promoters’ shareholding to 20 per cent of paid-up capital by December 31, 2018, and 15 per cent by March 31, 2020.
“Further to our intimation dated January 30, 2020,...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,” Kotak Mahindra Bank said in a regulatory filing.
With this, the bank is also moving towards withdrawing a case concerning the dilution of promoters’ shareholding in the bank which it had filed against the RBI in the Bombay high court.
“Our board 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 a late January filing.
As on date, the promoter and promoter group’s shareholding in the bank stands at 29.96 per cent.