Kotak Mahindra Bank drops 2% as FIPB defers proposal for raising FII limit

MUMBAI: Shares of Kotak Mahindra Bank fell by nearly 2 per cent today after an inter-ministerial panel deferred decision for the second time on the company's proposal for raising foreign investment limit in the bank to 55 per cent. The stock slipped 1.83 per cent to Rs 1,266 at the BSE. Selling was also seen at the counter on the NSE, where the scrip went down by 1.76 per cent to Rs 1,267.

The Foreign Investment Promotion Board (FIPB) had taken up the application in its meeting recently, but the decision was deferred in want of comments from the Department of Financial Services (DFS), sources said yesterday.

The Finance Ministry sources further said the DFS is likely to submit its comments by the end of this month.

Earlier, the board had deferred decision on the proposal in its 217th meeting held on April 30.
Kotak is seeking FIPB approval to raise the aggregate foreign investment limit to 55 per cent.