Uday Kotak’s wealth grows
Banking tycoon Uday Kotak's wealth has increased three-times ...
Banking tycoon Uday Kotak's wealth has increased three-times in the last five years even as he has been locked in a legal case with the Reserve bank of India (RBI) over reduction in promoter shares in Kotak Mahindra Bank. The founder of Mumbai-based Kotak Mahindra Bank has seen his wealth nearly triple since March 2014, when the RBI said he failed to meet the first of its successive milestones to reduce his stake in the bank, a Bloomberg report said.
Currently, his wealth stands at $11.4 billion, according to the Bloomberg Billionaires Index, mainly due to share price gains that have increased the value of his holding in Kotak Mahindra Bank. Kotak currently holds 30 per cent stake in bank.
The latest RBI deadline for Kotak to reduce his holding below 20 per cent was by the end of last year. It is part of the regulator's efforts to reduce the influence of founding shareholders in Indian banks. The bank is contesting that legally, arguing that a sale of preference shares last year which raised Rs 500 crore complies with the RBI regulations.
The bank's counsel said that the issue was about concentration of control and suggested that promoters would not vote in excess of 20 per cent till May 2020. However, the suggestion was not accepted by Justice A.S. Oka.