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

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Angel dcosta answered.
1 year ago
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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.

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