Kotak Mahindra Bank gains on heavy volumes

The stock was up nearly 3% to Rs 678 on the BSE, on back of heavy volumes in otherwise weak market.

Kotak Mahindra Bank was trading higher by nearly 3% to Rs 678 on the BSE, on back of heavy volumes in otherwise weak market.

In early morning trade at 09:16 AM, around 3.5 million equity shares of Kotak Mahindra Bank changed hands through block deal, the BSE data shows.

Till 01:21, the trading volumes on the counter more than doubled with a combined 5.25 million shares changed hands on the BSE and NSE.

The S&P BSE Sensex was down nearly 1% or 188 points at 25,150, while the banking index S&P BSE Bankex down 0.52%.

Earlier on March 1, 2016, Japan-based Sumitomo Mitsui Banking Corporation sold 32.8 million equity shares of Kotak Mahindra Bank for Rs 2,069 crore, block deal data showed. Canada Pension Plan Investment Board picked up shares 18.1 million shares worth Rs 1,152 crore at Rs 636.25 apiece. The remaining 14.7 million shares were sold at Rs 623.95 apiece to unknown buyers.

Last week, the Reserve Bank of India had allowed overseas investors to buy stake in Kotak Mahindra Bank as foreign shareholding in the private bank has come below the prescribed limit.

“The Reserve Bank of India, vide its letter dated March 22, 2016 has intimated that pursuant to the approval from the Foreign Investment Promotion Board, they are taking the foreign investment limit in Kotak Mahindra Bank to 55% on their record,” Kotak Mahindra Bank said in a statement.

It may be noted that the current limit for Foreign Institutional Investors (FIIs)/ sub-accounts of FIIs, Foreign Portfolio Investors (FPIs) and Qualified Foreign Investors (QFIs) approved by the board of directors remains at 40%, it added.