Kotak Mahindra Bank gains after RBI notifies 55% foreign investment ceiling

Kotak Mahindra Bank gained 0.04% to Rs 644.30 at 11:35 IST on BSE after the Reserve Bank of India intimated the private sector bank that it has taken on its record the revised foreign investment limit of 55% of the bank's equity capital.

The announcement was made during market hours today, 23 March 2016.

Meanwhile, the S&P BSE Sensex was down 172.42 points or 0.68% at 25,158.07.

On BSE, so far 43,097 shares were traded in the counter as against average daily volume of 2.97 lakh shares in the past one quarter. At the day's high of Rs 675.60, the stock rose 1.73%. At the day's low of Rs 661.45 hit so far during the day, the stock fell 0.45%. The stock had hit a record high of Rs 744.45 on 21 July 2015. The stock had hit a 52-week low of Rs 586.50 on 29 February 2016. The stock had underperformed the market over the past one month till 22 March 2016, rising 3.73% compared with 6.48% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 4.88% as against Sensex's 1.02% fall.

The large-cap private bank has equity capital of Rs 916.84 crore. Face value per share is Rs 5.

Kotak Mahindra Bank said that the Reserve Bank of India has intimated the bank that following an approval from the Foreign Investment Promotion Board, the central bank has taken on its record the foreign investment limit in Kotak Mahindra Bank to be at 55% of the bank's equity capital. The ceiling on investment in the bank's shares by foreign institutional investors, foreign portfolio investors (FPIs) and qualified foreign investors (QFIs) remains at 40% of equity capital.

Kotak Mahindra Bank's net profit rose 36.6% to Rs 634.72 crore on 61.8% rise in total income to Rs 4843.86 crore in Q3 December 2015 over Q3 December 2014.

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

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