KMBL gains after reports FIPB gives nod for increase in foreign investment limit

Kotak Mahindra Bank rose 1.52% to Rs 1,450 at 10:15 IST on BSE after reports the Foreign Investment Promotion Board on Friday, 3 July 2015, cleared the bank's proposal to raise foreign investment limit in the lender to 55%.

Meanwhile, the S&P BSE Sensex was down 227.57 points or 0.81% at 27,865.22.

On BSE, so far 57,582 shares were traded in the counter as against average daily volume of 1.09 lakh shares in the past one quarter.

Shares of private sector bank hit a high of Rs 1,463 and a low of Rs 1,440 so far during the day. The stock hit a record high of Rs 1,473.75 on 15 April 2015. The stock hit a 52-week low of Rs 847.15 on 11 July 2014.

Kotak Mahindra Bank had approached Foreign Investment Promotion Board (FIPB) after the Reserve Bank of India barred overseas investments in it as foreign shareholding hit the permissible threshold following the merger with ING Vysya Bank. Investments from foreign institutional investors (FIIs), foreign portfolio investors (FPIs) and foreign banks had reached 48.55% in the merged entity, report said.

The bank on 1 July 2015, had said it has reduced its base rate to 9.75% per annum from 9.85% per annum with effect from 2 July 2015.

On 29 June 2015, Kotak Mahindra Bank said that the bank has fixed 9 July 2015 as record date for the purpose of allotment of 1:1 bonus shares to the existing shareholders of the bank.

Kotak Mahindra Bank's net profit rose 29.5% to Rs 527.14 crore on 27.3% rise in total income to Rs 3249.08 crore in Q4 March 2015 over Q4 March 2014.

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