Canada Pension Fund to sell 1.66% stake worth $754 mn in Kotak Mahindra Bank: Report

The Canada Pension Plan Investment Board (CPPIB)  will sell 1.66% stake worth $754 million in Kotak Mahindra Bank Ltd on Friday, said a report on Thursday.

CNBC TV18 reported CPPIB is selling the stake at up to 5% discount of Kotak Mahindra Bank scrip's closing price on Thursday. The Fund will sell about 3.3 crore shares at a price range of Rs 1,792-1,886.

The Canadian pension fund held a 4.34% stake in the private lender as of March 31, as per Kotak's shareholding pattern. Kotak shares, which ended down 2.7% on Thursday, are up 3.2% so far this year.

According to bank's latest shareholding pattern, foreign investors own 36.7% stake in it. Among other public shareholders, LIC has about 6.21% stake and mutual funds own 10.99%.

Kotak Mahindra Bank, on April 29, reported 26% jump in its standalone net profit at Rs 3,495 crore for the March quarter. Net profit stood at Rs 2,767 crore in the year-ago period.

The private lender's net interest income (NII) for Q4 FY23 increased to Rs 6,103 crore, from Rs 4,521 crore in Q4FY22, up 35%. Net interest margin (NIM) was 5.33% for FY23 and 5.75% for Q4 Y23, the bank said in a stock exchange filing.