Kotak Mahindra Bank is among the top losers in the BSE currently. It slipped down almost 7.5% to Rs.1188 and remains firmly in the red.
The market is tensed about the battle between RBI and Kotak getting long drawn and ugly. The Bank today, filed a writ petition in Bombay High Court against Reserve Bank of India's decision on preference shares.
The RBI had not accepted the Bank’s way of issuing the preference shares to bring down its stake. The Bank said, “This refers to our letter dated August 2, 2018. RBI has today communicated to us that our PNCPS issuance does not meet their promoter holding dilution requirement. We continue to believe that we have met the requirement and will engage with the RBI in this behalf."
The Bank did not hear from RBI despite the Bank having conveyed its position to RBI. The Bank has said, “Given the milestone of December 31, 2018, the Bank has been left with no option but to protect its interest. By way of abundant caution, the Bank has today filed a writ petition with the Hon'ble Bombay High Court to validate the Bank's position.”