Tag: kotak mahindra

Private lender Kotak Mahindra Bank today ( November 29 )said that Life Insurance Corporation (LIC) has received approval from the Reserve Bank of India (RBI) to increase its stake in the Bank up to 9.99%. The approval is valid for a period of one year, the bank said. Currently, the life insurer holds 4.96 per cent in the private lender.As per RBI norms, prior approval of the RBI is required to increase stake in private banks beyond 5 per cent."We wish to inform you that Kotak Mahindra Bank Limited ("Bank") has received an intimation from Life Insurance Corporation of India ("LIC") stating that the Reserve Bank of India had granted its approval to UC, for increasing its holding in the Bank up to 9.99% of the paid up equity share capital of Bank," Kotak said in an exchange filing. LIC is one of the biggest institutional investors in India’s stock market and has stakes in a number of private and public sector banks. It also holds 49.24 per cent stake in IDBI Bank. Read more

Private sector lender Kotak Mahindra Bank on Wednesday approved a proposal to raise capital through the issuance of 6.5 crore shares. According to the current price of its shares, sale of 6.5 crore shares will entail raising up to Rs 7,500 crore. The private lender said the share sale will be either through a private placement, FPO, QIP or a combination thereof, as may be considered appropriate. The issue comes at a time when financial institutions may need capital in order to fend off worries of an escalation of bad loans. The capital raising may help the bank's promoter group led by its chief executive Uday Kotak reduce its holding in the bank to comply with a plan mandated by the Reserve Bank of India (RBI). As part of the bank's plan approved by the RBI, the lender is required to get down the promoters' stake to 26 per cent from the over 30 per cent held as of December 2019. The bank had last raised core capital in 2017 when it raised Rs 5,800 crore through the QIP route.