Seeking interim protection by Bombay High Court, counsel of Kotak Mahindra Bank on Tuesday proposed to reduce promoter holdings in the lender to 20 per cent by May 2020, according to a report by ET NOW.The court today adjourned the Kotak Mahindra Bank vs the Reserve Bank of India case to April 1, 2019.Kotak Mahindra Bank in December had approached Bombay High Court against an RBI order that had disallowed the use of preference shares to reduce promoter shareholding in Indias second most valuable private lender.
On August 2, 2018, the bank had announced the completion of the PNCPS issue, resulting in dilution of promoter stake to 19.70 per cent of paid-up capital.
The bank believes that it had met the promoter holding dilution requirement with the perpetual non-cumulative preference share (PNCPS) issuances, ET had reported.However, the Reserve Bank of India (RBI) had said that the preference share allotment route did not meet its promoter holding dilution requirement.Promoters were holding 30.01 per cent stake in the bank as of December 31, 2018, whereas public held 69.99 per cent stake.
Earlier in the day, shares of Kotak Mahindra Bank closed 1.10 per cent up at Rs 1,262.60.