KMBL drops on reports FIPB defers proposal for raising foreign investment limit

Kotak Mahindra Bank fell 1.43% to Rs 1,271.30 at 10:23 IST on BSE on reports the Foreign Investment Promotion Board once again deferred the bank's proposal for raising foreign investment limit in the bank to 55%.

Meanwhile, the S&P BSE Sensex was down 97.34 points or 0.37% at 26,489.21.

On BSE, so far 15,000 shares were traded in the counter as against average daily volume of 1.05 lakh shares in the past one quarter.

The stock hit a high of Rs 1,279.20 and low of Rs 1,266 so far during the day. The stock had hit a 52-week low of Rs 847.15 on 11 July 2014. The stock had hit a record high of Rs 1,473.75 on 15 April 2015.

The stock had underperformed the market over the past one month till 15 June 2015, sliding 4.07% compared with Sensex's 2.7% fall. The scrip had, however, outperformed the market in past one quarter, declining 3.87% as against Sensex's 6.72% fall.

The large-cap private sector bank has equity capital of Rs 456.43 crore. Face value per share is Rs 5.

According to reports, the proposal for raising foreign investment limit in Kotak Mahindra Bank (KMBL) was put off by the Foreign Investment Promotion Board (FIPB) as comments from the Department of Financial Services (DFS) about the impact of the proposal on downstream investment by the bank in the insurance venture did not come. The Insurance Regulatory and Development Authority of India (IRDAI) was to give its comments to DFS, reports added.

Private sector banks need FIPB approval, if foreign stake goes beyond 49%. It may be recalled that KMBL had in February 2015 announced the acquisition of ING Vysya Bank.

Kotak Mahindra Bank's consolidated net profit rose 37.6% to Rs 912.60 crore on 29.1% growth in total income to Rs 6172.26 crore in Q4 March 2015 over Q4 March 2014.

Kotak Mahindra Bank is one of the leading private sector banks in India.

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