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Promoter stake dilution: Kotak Mahindra Bank may look for out-of-court settlement with RBI

Updated : January 22, 2019 06:14 AM IST

Kotak Mahindra Bank may look for an out-of-court settlement with the Reserve Bank of India (RBI)  on promoter stake dilution issue, said people familiar with the matter.

Bombay High Court is considering a case filed by Kotak Mahindra against RBI on the issue.

According to RBI rules, a bank has to cut the promoter stake to 40 percent within three years, 20 percent within 10 years and then to 15 percent within 15 years.

In the case of Kotak Mahindra Bank, it was asked to cut the promoter stake to 20 percent by December 31, 2018, from 30 percent earlier, and eventually to 15 percent by March 2020.
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