Money & Banking

Kotak Mahindra Bank board undergoes rejig

Our Bureau Mumbai | Updated on March 15, 2019 Published on March 15, 2019

The board of directors of Kotak Mahindra Bank has undergone a revamp with the appointment of two Independent Directors and two Additional Directors.

The board also approved the payment of dividend on Non-Convertible Perpetual Non-Cumulative Preference Shares (PNCPS) for the period from August 2, 2018, till March 31, 2019.

“The record date fixed for the purpose of payment of dividend is on March 22, 2019,” the lender said in a regulatory filing.

The bank had, in last August, issued 100 crore non-convertible PNCPS of face value ₹5 each to eligible investors at an issue price of ₹5 per PNCPS, aggregating to ₹500 crore. The dividend rate on the PNCPS is 8.10 per cent per annum. It had also helped bring down promoter shareholding to about 20 per cent to meet the Reserve Bank of India’s norms, though the issue is now sub-judice and is being heard by the Bombay High Court.

Meanwhile, the board, in its meeting on Thursday and Friday, approved the re-appointment of Prakash Apte as Independent Director of the bank for a five-year period from March 16, 2019, to March 17, 2024.

The board also appointed Uday Shankar, President of 21st Century Fox, Asia, as Independent Director of the bank from March 16, 2019, for a period of five years.

The board also recommended the appointment of KVS Manian initially as an Additional Director acting as Whole-time Director of the bank for a three-year period, effective from the date of approval of the Reserve Bank of India.

It also recommended the appointment of Gaurang Shah initially as an Additional Director acting as Whole-Time Director of the bank for a three-year period from the time of RBI approval.

All appointments will also be subject to necessary approvals from shareholders, the bank said.

“The board also noted appointment of Narayan SA as Non-Executive Chairman of Kotak Securities, subsidiary of the bank, with effect from March 14, 2019,” it further said.

Shares of Kotak Mahindra Bank rose 4.31 per cent and closed at ₹1,325.30 apiece on the BSE.

Published on March 15, 2019
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