Kotak Bank at new high, Canada Pension Plan allowed to up stake

Moneycontrol BureauKotak Mahindra Bank shares surged to record high of Rs 807, up 2.7 percent intraday after the Canada Pension Plan is allowed to increase stake in the country's third largest private sector lender (by market capitalisation).

The Reserve Bank of India on Tuesday said it has granted approval to Canada Pension Plan Investment Board (CPPIB) for acquiring shares in excess of 5 percent and below 10 percent of the paid up capital of Kotak Mahindra Bank.

Canada Pension Plan held 4.89 percent stake in the bank as of June 2016. The pension fund company increased its stake in the bank from 3.91 percent in December 2015 to 4.9 percent in March 2016.

Meanwhile, the bank has remitted its yearly interest on time for two bonds - Upper Tier II Bond with 9.95 percent interest rate each. The interest was due on August 30.