Kotak Mahindra Bank fell 0.28% to Rs 861 at 11:55 IST on BSE after the Reserve Bank of India ordered the bank to reduce its promoter holding to 40% by the end of September 2014.
The announcement was made during trading hours today, 27 May 2014.
Meanwhile, the BSE Sensex was down 172.23 points, or 0.70%, to 24,544.65.
On BSE, so far 18,000 shares were traded in the counter, compared with an average volume of 71,733 shares in the past one quarter.
Trading was volatile on the counter. The stock rose 1.04% at the day's high of Rs 872.40 so far during the day. The stock fell 1.49% at the day's low of Rs 850.60 so far during the day.
The stock hit a record high of Rs 950 on 16 May 2014. The stock hit a 52-week low of Rs 588 on 28 August 2013.
The stock had underperformed the market over the past one month till 26 May 2014, rising 6.84% compared with 8.94% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 26.06% as against Sensex's 17.77% rise.
The large-cap private sector bank has an equity capital of Rs 385.18 crore. Face value per share is Rs 5.
The Reserve Bank of India (RBI) has ordered Kotak Mahindra Bank to bring down its promoter shareholding to 40% by 30 September 2014 per estimates provided by the bank. Kotak Mahindra Bank will then have until 31 December 2016 to cut its promoter shareholding to 30%.
As on 31 March 2014, promoters held 43.58% stake in Kotak Mahindra Bank. Among the promoter group, Uday Suresh Kotak held the largest stake of 39.76%.
Kotak Mahindra Bank's net profit fell 6.65% to Rs 407.18 crore on 0.74% decline in total income to Rs 2552.96 crore in Q4 March 2014 over Q4 March 2013.
Kotak Mahindra group is one of India's leading financial services conglomerates.
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