Kotak Mahindra Bank shares surged over 3 per cent on Wednesday after the private sector bank informed the bourses that Reserve Bank of India has granted approval to Canada Pension Plan Investment Board (CPPIB) for buying less than 10 per cent stake in the bank. According to Reuters data, CPPIB holds around 4.9 per cent stake in the bank.
At 2.56 pm, share price of the company was trading 3.28 per cent up at Rs 811.35. The scrip opened at Rs 797.15 nad touched a high and low of Rs 815 and Rs 791, respectively. Later, the scrip settled the day 2.77 per cent up at Rs 807.30.
“The Reserve Bank of India has informed that the bank that it has granted approval to Canada Pension Plan Investment Board (CPPIB) for acquiring shares in excess of 5 per cent and below 10 per cent of the paid up capital,” Kotak Mahindra Bank said in BSE filing.
CPIIB has picked up stake of the bank from Japanese multinational Sumitomo Mitsui Banking Corp (SMBC) through open market operation earlier this year. CPIIB bought 1.81 crore shares from SMBC.
Kotak Mahindra Bank posted almost fourfold jump in standalone net profit to Rs 741.97 crore in the first quarter ended June as compared to Rs 189.78 crore in the corresponding period last fiscal. Its total income increased to Rs 5,120.03 crore for the quarter ended June 2016 from Rs 4,583.86 crore a year ago. On consolidated basis, Kotak Mahindra Group also more than doubled to Rs 1,067.10 crore during April-June from Rs 516.57 crore in the year-ago period.