Private sector lender Kotak Mahindra Bank said the Reserve Bank of India had accepted promoters' voting rights to be capped at 20 percent till March.
"The RBI on January 29, 2020, has conveyed its in-principle acceptance promoters' voting rights in the bank to be capped at 20 percent till March 31, 2020," Kotak Mahindra Bank said in a BSE filing on January 30.
The bank said promoters' voting rights in the bank will be capped to 15 percent from April 1 and promoters' shareholding will be cut to 26 percent within six months from the final RBI nod.
The RBI's licensing rules mandate a private bank's promoter to pare holding to 40 percent within three years, 20 percent in 10 years and 15 percent within 15 years.
Promoters, who hold a 29.96 percent stake in Kotak Mahindra Bank, can't buy shares till the holding is cut to 15 percent.
"The promoters will not purchase any further paid-up voting equity shares of the bank till the percentage of promoters’ shareholding reaches 15 percent of paid-up voting equity share capital of the bank or such higher percentage as may be permitted by RBI from time to time," said the bank.Kotak Mahindra Bank is withdrawing the petition it filed in Bombay High Court against RBI’s licencing rules.