Kotak Mahindra Bank scales record high as RBI allows stake hike by CPPIB

Kotak Mahindra Bank rose 2.1% to Rs 802.05 at 10:40 IST on BSE after the Reserve Bank of India granted its approval to Canada Pension Plan Investment Board to hike its stake in the private sector bank.

The announcement was made after market hours yesterday, 30 August 2016.

Meanwhile, the S&P BSE Sensex was up 78.82 points or 0.28% at 28,421.83

On BSE, so far lakh 81,000 shares were traded in the counter as against average daily volume of 1.80 lakh shares in the past one quarter. The stock hit a high of Rs 807 in intraday trade so far, which is record high for the counter. The stock hit a low of Rs 791 so far during the day. The stock had hit a 52-week low of Rs 586.50 on 29 February 2016. The stock had outperformed the market over the past 30 days till 30 August 2016, rising 4.18% compared with 1.21% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 5.4% as against Sensex's 6.1% rise.

The large-cap bank has equity capital of Rs 918.19 crore. Face value per share is Rs 5.

Kotak Mahindra Bank said that the Reserve Bank of India (RBI) has informed the bank that it has granted approval to Canada Pension Plan Investment Board (CPPIB) for acquiring shares in excess of 5% and below 10% of the paid up capital of the bank. CPPIB, a registered foreign institutional investor in India, already owns 4.89% stake in Kotak Mahindra Bank (as per the shareholding pattern as on 30 June 2016).

Kotak Mahindra Bank net profit rose 290.96% to Rs 741.97 crore on 11.7% growth in total income to Rs 5120.03 crore in Q1 June 2016 over Q1 June 2015.

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

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