Foreign investors can acquire up to 49 percent stake in Indian lenders through automatic route, but beyond that requires the nod of FIPB, headed by the Economic Affairs Secretary in the Finance Ministry.

Private sector  Kotak Mahindra Bank  has approached the Foreign Investment Promotion Board (FIPB) to hike foreign investment ceiling in the bank to 55 percent.

At present, foreign investors, including FIIs, FPIs, and foreign banks, together hold 48.5 percent in Kotak Bank pursuant to its merger with ING Vysya Bank. Foreign investors can acquire up to 49 percent stake in Indian lenders through automatic route, but beyond that requires the nod of FIPB, headed by the Economic Affairs Secretary in the Finance Ministry. “Kotak Mahindra Bank’s application for an approval to increase the aggregate ceiling on foreign investment to 55 percent is currently under the consideration by the FIPB,” Kotak Bank said.

Out of the 48.55 percent holding of foreign investors, FIIs hold 33.46 percent, foreign portfolio investors hold 2.43 percent, foreign bodies 8.11 percent and foreign banks 3.60 percent. In November, Kotak Mahindra Bank had announced the acquisition of mid-sized private sector  ING Vysya Bank  in an all-share deal worth Rs 15,000 crore. As part of the deal, 725 equity shares of Rs 5 each (face value) of Kotak Mahindra were to be issued for every 1,000 shares of Rs 10 each held in ING Vysya Bank. Promoters hold 33.91 percent stake in Kotak Bank.

Shares of the company were trading at Rs 1353.45, down 1.21 percent on the BSE. Kotak Mahindra stock price On April 21, 2015, Kotak Mahindra Bank closed at Rs 1353.60, down Rs 16.45, or 1.2 percent. The 52-week high of the share was Rs 1473.75 and the 52-week low was Rs 785.00.

 The company’s trailing 12-month (TTM) EPS was at Rs 22.61 per share as per the quarter ended December 2014. The stock’s price-to-earnings (P/E) ratio was 59.87. The latest book value of the company is Rs 158.94 per share. At current value, the price-to-book value of the company is 8.52.