Kotak Mahindra Bank Divests 10% Stake In ECA Trading Services

On Friday, Kotak Mahindra Bank said that it has divested a 10% stake in ECA Trading Services to one of its subsidiaries for nearly Rs 2 crore.

The private lender has sold 1,09,48,925 equity shares of Rs 10 each (10% of its stake) of ECA Trading Services Limited to Kotak Securities (a wholly-owned subsidiary of the bank), at a consideration of Rs 1.98 crore, it said in a regulatory filing.

The divestment, Kotak said, was done to comply with the prudential limit stipulated by the Reserve Bank of India on investment in a non-financial services entity.

"The holding of the bank at the consolidated level continues to be 20%," the filing added.

The transaction was completed on 4 March 2021, said the lender.

Shares of Kotak Mahindra Bank stock rose up to 0.20% to Rs 1,903.70 apiece on NSE in morning trade.

On Thursday, the bank said that it has signed a memorandum of understanding (MoU) with the Indian Army for salary accounts.

The MoU enables Kotak to offer its salary account proposition, combined with exclusive benefits for the Indian Army, to all army personnel - both active and retired, Kotak Mahindra Bank said in a release.