The stake sale is in lieu with RBI’s guidelines of having the promoters stake capped at 26% maximum.
Currently, Uday Kotak holds 28.93% of the bank.
Promoter Group Holding in KMB over the years :
• 2012 : ~45.21% • 2014 : ~40% • 2017 : ~30% • 2020 : ~26%
This sale is a part of an agreement with RBI courtesy a long Courtroom Battle regarding his high stake in the bank.
According to this agreement RBI granted Mr. Kotak time till 17th August to shell out promoter group stake in accordance to the settlement pact.
RBI has been trying to restrict promoter’s holding in private banks in the past 2-3 years.
They believe private banks should have ‘diversified’ set of shareholders with voting rights rather than a few individuals.
This will result into more compliance & greatly improve their governance.
Under the able leadership of Uday Kotak, KMB has become India’s 2nd Largest Private Bank.
KMB in FY’20 :
• Market Cap : ~₹2.53 Trillion • Revenues : ~₹29,935 Cr • Net Profit : ~₹7,204 Cr
Today Uday Kotak is Asia’s Richest banker with a net-worth of a whopping $11.3 Bn.
Comments