INSUBCONTINENT EXCLUSIVE:
complying with stake dilution norms.The RBI said it decided to impose a penalty after reviewing the bank's reply to a notice seeking an
explanation about why it had not complied with regulatory norms."RBI came to the conclusion that the bank had failed to comply with the
directions issued by RBI and decided to impose monetary penalty on the bank," the Reserve Bank of India (RBI) said in a statement.The bank
is in the middle of a legal battle with the central bank, which last year ordered Uday Kotak, the billionaire head of Kotak Mahindra Bank,
to lower his holdings in the private-sector lender.Kotak, India's fifth largest bank by market capitalization, said in a late night filing
to National Stock Exchange that it was examining the RBI's order.
