Money & Banking

Bombay HC adjourns hearing on Kotak Mahindra Bank vs RBI case to April 22

Our Bureau Mumbai | Updated on April 01, 2019 Published on April 01, 2019

The Bombay High Court on Monday adjourned the hearing in the writ petition filed by Kotak Mahindra Bank on the issue of promoter shareholding norms by the Reserve Bank of India to April 22.

Appearing before the court, the counsel for Kotak Mahindra Bank said that the promoter’s stake is less than 20 per cent of the paid up capital of the lender and so the RBI should not take any action. However, the Court asked how the bank doesn’t expect the regulator to take action. The High Court has previously refused to grant interim relief to Kotak Mahindra Bank.

The case relates to the issue of diluting promoter shareholding in the bank to 20 per cent by December 31, 2018, from close to 30 per cent at present. The RBI had said the issuance of Perpetual Non-Convertible Preference Shares (PNCPS) by the lender in August last year did not meet its requirements.

Kotak Mahindra Bank had filed the writ petition on December 10 last year on the Banking Regulation Act, and had sought validation on whether its issuance of PNCPS met the regulatory requirements.

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Published on April 01, 2019
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