Kotak Mahindra Bank drags RBI to Court over dilution of promoter stakeholding
The Reserve Bank of India wants the lender to lower the promoter holding to less than 20 per cent from the current 30 per cent by December end.
Files writ petition in Bombay High Court
MUMBAI, DECEMBER 10
In an unprecedented development, private sector lender Kotak Mahindra Bank has taken the Reserve Bank of India to court over dilution of promoter stakeholding.
In a regulatory filing on Monday, the lender said it has filed a writ petition with the Bombay High Court as it has not heard from the RBI on whether the issuance of Perpetual Non-Convertible Preference Shares (PNCPS) meets the requirements of lowering the promoter stakeholding.
The move comes just days before the December 31 deadline set by the RBI expires.
“By way of abundant caution, the bank has today filed a writ petition with the Bombay High Court to validate the bank’s position,” it said, adding that it had issued PNCPS in August to dilute the promoter’s stake.