INSUBCONTINENT EXCLUSIVE:
Uday Kotak, head of Kotak Mahindra Bank, has been asked by RBI to lower his holding to 20% by 2018-end.Kotak Mahindra Bank Ltd said on
Monday it had challenged in court the central bank's decision to disregard the issue of preference shares to reduce promoter stake in the
private-sector lender, sending shares sharply lower
Uday Kotak, the billionaire head of Kotak Mahindra Bank, has been asked by the Reserve Bank of India (RBI) to lower his holding in the
lender to 20 per cent by this year-end, and to 15 per cent by March 31, 2020
Uday Kotak directly held a 29.73 per cent stake in the lender, as of September 30, 2018, according to Bombay Stock Exchange data.(: Kotak
Mahindra Bank Revises Fixed Deposit (FD) Interest Rates; What Other Banks Pay)Kotak Mahindra, which in August completed an issue of
perpetual non-convertible preference shares (PNCPS) in a bid to cut promoter stake, was told by the RBI that this did not meet the central
bank's promoter-holding dilution requirement.The bank said it had not heard from the RBI on the matter after clarifying that PNCPS were a
part of the paid-up capital of the bank, and also the legal basis on the dilution of shareholding."Given the milestone of December 31, 2018,
the bank has been left with no option but to protect its interest," the lender said in a statement
Kotak Mahindra Bank's move against the RBI comes days after billionaire investor Warren Buffett's Berkshire Hathaway Inc was rumoured to be
in talks with the bank to pick up a 10 per cent stake
The lender's shares had closed 8.4 per cent firmer following the report on Friday.The bank said it was unaware of any plans of Berkshire
investment.The stock fell as much as 7.2 per cent in its biggest daily drop since October 1 after Kotak Mahindra's announcement on
Monday.(Except for the headline, this story has not been edited by TheIndianSubcontinent staff and is published from a syndicated feed.)For
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