Kotak Mahindra Bank divests 10 percent stake in ECA Trading Services to its arm

New Delhi: Kotak Mahindra Bank, an Indian private sector bank on Friday said it has divested a 10 percent stake in ECA Trading Services to one of its subsidiaries for nearly Rs 2 crore.

Kotak Mahindra Bank has sold 1,09,48,925 equity shares of Rs 10 each (10 percent of its stake) of ECA Trading Services Limited to Kotak Securities (a wholly-owned subsidiary of the bank), at a consideration of Rs 1.98 crore, it said in a regulatory filing.

The divestment, Kotak said, was done to comply with the prudential limit stipulated by the Reserve Bank of India on investment in a non-financial services entity. "The holding of the bank at the consolidated level continues to be 20 percent," the filing added.

The transaction was completed on March 4, 2021, said the lender. Kotak Mahindra Bank stock was trading 0.06 percent up at Rs 1,898 apiece on BSE in morning trade. (PTI)