Kotak Mahindra Bank said on Wednesday that the RBI has granted its final approval regarding the dilution of promoters' shareholding in the Bank.

"The Reserve Bank of India has granted its final approval vide its letter dated 18th February 2020 in the matter relating to dilution of promoters' shareholding in the Bank," the bank said in a February 19 regulatory filing.

Kotak Mahindra Bank on January 30 had said that it decided to cap the promoters' voting rights to 15 percent from April 1 onwards. The RBI accepted promoters' voting rights to be capped at 20 percent till March.

The RBI gave its in-principle acceptance for reducing promoters' shareholding to 26 percent of the paid-up voting equity share capital of the bank within six months from the date of final approval of the regulator, it said.

The Uday Kotak led bank also said that it had decided to withdraw the case filed in Bombay High Court after RBI rejected its proposal to issue perpetual non-convertible preference shares to comply.

First Published:Feb 19, 2020 9:10 AM IST