Private sector lender Kotak Mahindra Bank moved Bombay High Court after Reserve Bank of India rejected the bank’s proposal to reduce promoter stake by issuing perpetual non convertible preference shares.
Kotak Mahindra Bank is mandated to reduce its promoter Uday Kotak’s stake to 20% from 30% by December 31.
“Given the milestone of December 31, 2018, the Bank has been left with no option but to protect its interest. By way of abundant caution, the Bank has today filed a writ petition with the Hon’ble Bombay High Court to validate the Bank’s position,” the bank said in a communication to the stock exchanges.
