Mumbai :  The board of Kotak Mahindra Bank on Thursday approved sale of 62 million shares to boost the capital base of the bank in order to pursue consolidation as well stressed asset resolution-related opportunities in the Indian banking and financial services space.

In a notice to the stock exchanges, the private sector lender said the approval would allow the bank to issue equity shares, through various routes, including qualified institutional placement, global depository receipts and/or American Depository Receipts. As on Dec 31, excluding profits, the bank’s capital adequacy ratio was at 16.0%, with tier-I at 14.9%. The capital raising plan is based on the review of the communication received from the Reserve Bank of India on promoter holding in the bank, the filing said.

The central bank has directed promoters of the bank to cut shareholding to 15% by Mar 31, 2020, in a phased manner. The bank has to cut promoter stake to 30% by Jun 30, and to 20% by Dec 31. As of Dec 31, promoters held 33.61% stake in the bank, according to data on BSE.

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