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Kotak Bank moves HC against RBI, stock plunges 7%

NEW DELHI: Kotak Mahindra Bank upped the ante on the promote..

NEW DELHI: Kotak Mahindra Bank upped the ante on the promoter shareholding issue on Monday as it moved the Bombay High Court seeking legal relief.

"… 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 private lender said in a regulatory filing to the BSE.

The issue at the centre of the debate is completion of the Perpetual Non Convertible Preference Shares (PNCPS) on August 2, which resulted in dilution of promoter stake to 19.70 per cent of paid up capital.

But the RBI raised a red flag, saying the PNCPS route to dilute promoter shareholding is not acceptable.

The scrip saw a big fall on Monday and led the pack of Sensex losers around 12:10 pm. It plunged over 7 per cent on the BSE, but pared losses, trading 5.19 per cent down at Rs 1,215.65 at that point.

The stock hit 52-week low at Rs 992.50 on January 9 while it hit 52-week high at Rs 1,424 on July 17.

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