The bank last week challenged in court the Reserve Bank of India's (RBI’s) decision of not allowing its promoter to issue preference shares to reduce stake in the private-sector lender.
Uday Kotak, the head of Kotak Mahindra, has been asked by the RBI to lower his holding in the company to 20 per cent by the end of the year, and to 15 per cent by March 31, 2020.
Shares of Kotak Mahindra Bank fell over 3 percent on the news.
Disclosure: Entities controlled by the Kotak family have a significant shareholding in Business Standard. 
 "Kotak buys out Old Mutual's 26% stake for Rs 1,293 cr in insurance arm")
