ING, the Dutch multinational banking and financial services company, is likely to sell a part of its 6.42 per cent in Indian private sector lender Kotak Mahindra Bank. The emerging reports indicate that the stake sale could be in the range of 1.39 per cent to 2.54 per cent, corresponding to $300 million and up to $550 million.
Reuters said a spokeswoman for the bank confirmed the bank's plans of selling its stake in Kotak Mahindra Bank. "We will disclose further details at closing," the agency quoted the spokeswoman as saying.
ING held a 6.42 per cent in the Indian bank via ING Mauritius Investments as on June 30, according to a regulatory filing by Kotak Mahindra Bank to the Bombay Stock Exchange (BSE).
Kotak Mahindra Bank shares closed at Rs 782.80 on the BSE on Wednesday. The lender will be declaring its second quarter results on October 25.
The bank earned net profit of Rs 742 crore on total income of Rs 2,652 crore for the first quarter ended June 30. Net non-performing assets rose to 1.21 per cent of advances that stood at Rs 1,20,765 crore, of which retail loans constituted Rs 49,548 crore.
Kotak Mahindra Bank had acquired ING Vysya Bank and the merger was approved by the Reserve Bank of India with effect from April 1, 2015. In 2014, the bank had entered general insurance business.