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Kotak Bank brings down promoters’ stake

Kotak Mahindra Bank said its promoters have brought down their stake in the bank at the behest of the Reserve Bank of India. A statement from the bank said Kotak Trustee Company, a promoter group entity, has sold approximately 2.5 crore shares amounting to around 3.24% shareholding in the bank. The bank had been directed by the RBI to bring down its promoter shareholding to 40% by 30 September 2014. The present sale reduces the shareholding of the promoters to 40.33%. RBI is likely to insist that promoters should not hold more than 15% in private sector banks. This is in line with the new norms governing ownership pattern in private banks. A spokesperson of the bank said the bank will prefer paring the stake through an acquisition route rather than a sale to investors. Paul Parambi, head of group strategy of the bank, said the bank would prefer reducing the stake of the promoters by going the inorganic route which may involve an acquisition. Acquisition was better than a stake sale to a financial investor as that creates more value for shareholders, he added. He, however, added that the bank will not do an acquisition for the purpose of reducing the promoter share and that creating the value for the existing shareholders will be at the centre of any such move.

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