Mumbai/NewDelhi: Locked in a legal battle with RBI over promoter stake dilution issue, Kotak Mahindra Bank has alleged the regulator is “unfairly” creating an impression that the lender was trying to further promoter Uday Kotak’s interest.
Countering an affidavit filed by the Reserve Bank of India (RBI) in the Bombay High Court, where it has challenged a regulatory directive, Kotak Mahindra Bank said, “The reply unfairly seeks to create an impression that the promoters’ interest is being furthered through the petition and seeks to question the locus standi of the petitioners (the bank) in challenging the Reduction Communications.”
RBI had asked the bank to cut promoter shareholding to 20 pc of paid up capital by December 31, 2018, and 15 pc by March 31, 2020. As on December 31, 2018, Uday Kotak, the bank’s vice chairman and managing director, held 29.72 pc stake in the bank. The bank has challenged RBI’s contention in the Bombay High Court, which is hearing the matter.