Kotak Mahindra Bank hits lifetime high

Kotak Mahindra Bank proposes to raise the ceiling for FII investments in the bank to 40%

Kotak Mahindra Bank has moved higher by nearly 4% to Rs 972, also its record high on NSE, after the private sector lender proposes to increase the ceiling limit of overseas investment to 40%.

Kotak Mahindra Bank in its notice to shareholders for the upcoming annual general meeting (AGM) on July 16 has sought members’ approval to pass a resolution to this effect.

The bank said it has proposed to increase the limit on total holdings of foreign institutional investor (FII) and sub-accounts of FIIs, foreign portfolio investor (FPI) and qualified foreign investor (QFI) to 40% of the paid-up equity capital of the bank, subject to approval of the Reserve Bank of India (RBI) and such other regulatory approvals as may be necessary.

The will help the bank comply with the RBI diktat of reducing the promoter holding.

In May this year, the RBI had directed Kotak Mahindra Bank to reduce its promoter shareholding to 40% by September 30 this year and then to 30% by December 31, 2016, the private lender informed the stock exchanges. The Current promoter shareholding is 43.58%.

The stock opened at Rs 945 and has seen a combined 548,367 shares changing hands on the counter so far on NSE and BSE.