Kotak Mahindra Bank Shares Jump 4%, Hit 52-Week High

Kotak Mahindra Bank shares jumped nearly 4 per cent on Wednesday after the Reserve Bank allowed Canada Pension Plan Investment Board to raise its stake in the private lender. 

"The Reserve Bank of India has informed the bank that it has granted approval to Canada Pension Plan Investment Board (CPPIB) for acquiring shares in excess of 5 per cent and below 10 per cent of the paid-up capital," Kotak Mahindra Bank said in a release to Bombay Stock Exchange. 

CPPIB is currently the largest foreign portfolio investor (FPI) In Kotak Mahindra Bank with 4.89 per cent stake. 

CPIIB had picked up 1.81 crore shares in Kotak Mahindra Bank from Japanese multinational Sumitomo Mitsui Banking Corp (SMBC) through an open market operation earlier this year. Post RBI's nod, CPPIB can now increase its stake in Kotak Mahindra Bank up to 10 per cent. 

Kotak Mahindra Bank shares closed 2.64 per cent higher at Rs 806.9 compared to 0.48 per cent gain in the broader Nifty.