Kotak Mahindra Bank Shares Surge After RBI- Bank Settle Promoter Shareholding Dispute

Shares of Kotak Mahindra Bank emerged as the top gainer on the Nifty, up as much as 5%, after the apex bank and Uday Kotak led private sector bank settle promoter shareholding feud.

Kotak Mahindra Surges After RBI- Bank Settle Promoter Shareholding Dispute

The gains came after the private banker decided to limit the promoters' voting rights to 15% from April 1, 2020. Further to the development, the bank said the apex bank has given its in-principle approval for lowering promoters' shareholding to 26% of the paid-up equity capital within six months from the final date of approval by the regulator.

Kotak Mahindra Bank in a regulatory filing said the bank has decided to withdraw the case filed in Bombay High Court after RBI denied its proposal for issuing perpetual non-convertible preference shares for complying with rules relating to promoter shareholding.

Last, shares of Kotak Mahindra Bank quoted higher by 4.66% at Rs. 1704.05 per share.

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