Shares of India's major private sector lender Kotak Mahindra Bank slumped in trade on Friday morning, after media reports said that ING Mauritius Investments has sold its stake.
Shares of India’s major private sector lender Kotak Mahindra Bank slumped in trade on Friday morning, after media reports said that ING Mauritius Investments has sold its stake. Kotak Mahindra Bank shares are trading 3.5% lower at Rs 1,242.05 on BSE. CNBC TV18 reported citing sources saying that ING has sold its entire 3% stake in Kotak Mahindra Bank via block deal. Earlier, media reports had indicated expectations that the offer price will be at 3-5 per cent discount to the Thursday’s closing price. “5.87 crore shares (3% stake) equity trade in multiple blocks. ING may have sold stake in Kotak Mahindra Bank via block deal,” said a CNBC-TV18 report.
Notably, the shares changed hands at an average price of Rs 1,232, Bloomberg data showed. The price is at a 4.5 per cent discount of Thursday’s close. Earlier, ET Now had reported that ING Group is looking to sell around 1.20% stake in Kotak Mahindra Bank worth over Rs 2,800 crore via block deal on February 22.
Kotak Mahindra Bank has reported a 22.5% on-year rise in its standalone net profit to Rs 1,291 crore for the third quarter of FY19. The profits were driven up by a good growth in the top line and also due to a write-back in provisions. While provisions in Q3FY18 totalled Rs 212.77 crore, in the December 2018 quarter there was a write-back of `32.3 crore. The bank’s pre-provisioning profit grew at just 6.5% year-on-year to Rs 1,938.5 crore even though the net interest income grew 22.7% y-o-y to `2,939 crore. This was due to a sharp rise in expenses.