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Kotak Mahindra Bank gains after RBI lifts restrictions on share purchases by foreign investors

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Capital Market
Last Updated : Mar 10 2016 | 10:47 AM IST

Kotak Mahindra Bank gained 0.33% to Rs 661.85 at 10:25 IST on BSE after the Reserve Bank of India announced removal of restrictions placed on the purchase of shares of the bank by foreign investors.

The Reserve Bank of India (RBI) made the announcement after trading hours yesterday, 9 March 2016.

Meanwhile, the S&P BSE Sensex was down 143.57 points or 0.58% at 24,650.39.

On BSE, so far 19,238 shares were traded in the counter as against average daily volume of 1.14 lakh shares in the past one quarter. The stock hit a high of Rs 670 and a low of Rs 660.50 so far during the day. The stock had hit a record high of Rs 744.45 on 21 July 2015. The stock had hit a 52-week low of Rs 586.50 on 29 February 2016. The stock had underperformed the market over the past one month till 9 March 2016, sliding 2.59% compared with 3.22% gains in the Sensex. The scrip had also underperformed the market in past one quarter, falling 1.6% as against Sensex's 0.97% fall.

The large-cap private bank has equity capital of Rs 916.84 crore. Face value per share is Rs 5.

The RBI said that the aggregate share holdings by foreign investors in the private sector bank has gone below the prescribed limit stipulated under the prevailing foreign direct investment (FDI) policy and hence the restrictions are removed on purchases of the bank's shares by the foreign investors.

Kotak Mahindra Bank's net profit rose 36.6% to Rs 634.72 crore on 61.8% rise in total income to Rs 4843.86 crore in Q3 December 2015 over Q3 December 2014.

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Kotak Mahindra Bank is one of the leading private sector banks in India.

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First Published: Mar 10 2016 | 10:22 AM IST

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