Shares of Kotak Mahindra Bank Ltd dropped as much as 7.2 per cent to Rs 1,188, their worst intraday percentage fall since October 1 as the private-sector bank has filed a petition with the Bombay High Court challenging the central bank’s decision to not allow its promoter to issue preference shares to reduce stake.
Promoter Uday Kotak has been asked by the Reserve Bank of India to cut shareholding in the bank to 20 per cent by year-end, and to 15 per cent by March 31, 2020.
More than 12.1 million shares traded by 0635 GMT vs 30-day average of 3.4 million shares. The stock was the top percentage loser on both NSE and BSE indexes.