Kotak Mahindra Bank shareholders approve plan to raise capital

Kotak Mahindra Bank on Monday said it has received shareholder approval for its capital raising plans.

“We would like to inform you that the above mentioned special resolution has been passed by the members with requisite majority. The resolution is deemed to have been passed effectively on the date of declaration of the results — May 25, 2020,” it said in a regulatory filing.

The private sector lender plans to raise as much as ₹7,500 crore through the issue of 6.5 crore equity shares of ₹5 each, through a private placement, a follow-on public offering, a qualified institutional placement or a combination of the instruments.

Cuts interest rate

In a separate development, the bank has reduced the interest rates for savings bank accounts by up to 25 basis points for balance up to ₹1 lakh and by 50 bps for balance over ₹1 lakh.

Accordingly, savings accounts with balance up to ₹1 lakh will earn interest of 3.5 per cent and above that will earn interest of 4 per cent. The new rates are effective Monday.