Kotak Mahindra Bank to withdraw court case against RBI, to pare promoter stake to 26 pc in six months

Private sector lender Kotak Mahindra Bank on Thursday said it will withdraw a case concerning dilution of promoters' shareholding in the bank which it had filed against the RBI in the Bombay High Court.

Kotak Mahindra Bank said the RBI has given its in-principle acceptance for 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 promoter shareholding to 20 per cent of paid-up capital by December 31, 2018, and 15 per cent by March 31, 2020.

"With respect to our proposal... RBI vide its letter dated January 29, 2020 has conveyed its in-principle acceptance for promoters voting rights in the bank to be capped to 20 per cent of PUVESC until March 31, 2020; and promoters' shareholding in the bank to be reduced to 26 per cent of PUVESC of the bank within six months from the date of final approval of the RBI," Kotak Mahindra Bank said in a regulatory filing.