RBI extends deadline for Kotak Mahindra Bank promoters to reduce stake

MUMBAI: Reserve Bank of India (RBI) has given more time for the Kotak family, led by managing director Uday Kotak to reduce their promoter stake in Kotak Mahindra Bank after a deadline to bring down stake expired in December, a company notice on the Bombay Stock Exchange said.

Promoter holding in the bank has to come down to 30% by June 2017, six months later than the earlier directed 30% by December 2016. Further this stake has to be brought down to 20% by December 2018 later than the earlier RBI deadline of March 2018.

Uday Kotak along with family members control 33.61% stake in the bank as of December 2016 out of which 33.30% is held by Kotak in his personal capacity, BSE data shows.

The bank will also have to bring down promoter holding to 15% by March 2020 in line with the 2013 guidelines for new bank licences released in 2014. No Kotak official was available for comment.

Kotak shares had fallen as much as 4.5% the biggest such fall since November after the notice. However, they have since recovered to be up 0.38%.