Kotak Mahindra Bank has approached the Foreign Investment Promotion Board (FIPB) to hike foreign investment ceiling in the bank to 55%. Currently, foreign investors, including FIIs, FPIs, and foreign banks, together hold 48.5% in Kotak Bank pursuant to its merger with ING Vysya Bank.
Foreign investors can acquire up to 49% stake in Indian lenders through automatic route, but beyond that requires the nod of FIPB.
Out of the 48.55% holding of foreign investors, FIIs hold 33.46%, foreign portfolio investors hold 2.43%, foreign bodies 8.11% and foreign banks 3.60%.
