Kotak Mahindra Bank is buzzing a lot today and this is on account of two news’s.
Firstly, based on the recommendations made by the RBI internal working group, the central bank raised the permissible promoter holding in private banks to up to 26% from 15%. This move is especially beneficial for Kotak Mahindra as it was in a tussle with SEBI over bringing down Uday Kotak, the promoters stake to the mandated 26%. At end of Q2FY22, the promoter group held 26%, which means they do not have to sell stake any more to bring it down to 15%.
Second news - RBI giving LIC its permission to hike stake in the Bank to 9.99%. Currently, LIC holds 4.96% in Kotak Bank. The approval by the Central Bank will be valid for one year.
The stock opened over 1% higher today at Rs.1985 and went on to an intraday high at Rs.2043.55. Its 52-week high is at Rs.2252.45.