CPPIB gets RBI nod for raising stake in Kotak Bank

RBI has given approval to Canada Pension Plan Investment Board (CPPIB) to acquire up to 10 per cent stake in Kotak Mahindra Bank, the private sector lender said.
"The Reserve Bank of India has informed that it has granted approval to CPPIB for acquiring shares in excess of 5 per cent and below 10 per cent of the paid up capital of the bank," Kotak Mahindra Bank said in a regulatory filing to stock exchanges.
CPPIB picked up stake in the bank from Japanese multinational Sumitomo Mitsui Banking Corp (SMBC) through open market operation earlier this year. CPPIB bought 1.81 crore shares from SMBC.

As per norms, a foreign investor cannot own more than 10 per cent stake in a private sector bank.