Kotak Mahindra Says Central Bank Asked Main Holder to Cut Stake

Kotak Mahindra Bank Ltd. (KMB) said its controlling shareholder has been asked by the central bank to reduce his stake to 20 percent by March 31, 2018.

The Reserve Bank of India will “take a view on dilution” over the two years following that deadline, according to a statement filed by the Mumbai-based bank with the stock exchange. The holding may have to be reduced to 10 percent “depending upon the prescription of promoter holding in the new bank guidelines,” it said.

The controlling shareholder’s current stake is 45.21 percent, according to the statement.

To contact the reporter on this story: Chitra Somayaji in Hong Kong at csomayaji@bloomberg.net

To contact the editor responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net

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