InvestorQ : What are Uday Kotak’s plans for stake reduction of the promoters in Kotak Bank?
Juvina Maggie made post

What are Uday Kotak’s plans for stake reduction of the promoters in Kotak Bank?

Answer
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Angel dcosta answered.
5 months ago


Kotak Bank is planning to raise capital, which will help promoter Uday Kotak lower his stake and comply with RBI regulations. The bank proposes to sell 4% of its promoter stake worth at least Rs.8,000 crore. This will help Uday Kotak lower his stake to 26% as per RBI norms and also augment the bank’s capital adequacy. The promoter stake has to be brought down to 26% before September 2020. Kotak Bank’s capital adequacy ratio is already healthy at 18%. The promoter had also agreed to reduce voting rights in a graded fashion to bring an end to the feud with the RBI. In the last tranche in 2017, Uday Kotak had sold his stake to the Canadian Pension Fund.