NEW DELHI, June 7 (Reuters) - India’s central bank on Friday fined Kotak Mahindra Bank Ltd 20 million rupees ($288,525) for not furnishing details about the shareholdings of its majority stakeholders and its plans for complying with stake dilution norms.
The Reserve Bank of India (RBI) said it decided to impose a penalty after reviewing the bank’s reply to a notice seeking an explanation about why it had not complied with regulatory norms.
“RBI came to the conclusion that the bank had failed to comply with the directions issued by RBI and decided to impose monetary penalty on the bank,” the Reserve Bank of India said in a statement.
The bank is in the middle of a legal battle with the central bank, which last year ordered Uday Kotak, the billionaire head of Kotak Mahindra Bank, to lower his holdings in the private-sector lender.
Kotak, India’s fifth largest bank by market capitalization, said in a late night filing to India’s National Stock Exchange that it was examining the RBI’s order. ($1 = 69.3180 Indian rupees) (Reporting by Sudarshan Varadhan, Editing by William Maclean)