The Reserve Bank of India has approved the proposal of Canada Pension Plan Investment Board (CPPIB) to increase its stake up to 10% in Kotak Mahindra Bank. CPPIB at the end of June 2016, was the largest foreign portfolio investor and had 4.89% stake in Kotak Mahindra Bank. The other FPIs include Capital World Growth and Income Fund, SmallCap World Fund, New World Fund, National Westminister Bank and Europacific Growth Fund. CPPIB had raised its stake in March by buying shares from Japan-based Sumitomo Mitsui Banking Corporation. Kotak Mahindra Group had tied up with CPPIB to launch a $525 million fund to invest in the stressed asset market in India.
