The board of Kotak Mahindra Bank on Wednesday approved a proposal to raise capital through the issuance of 6.5 crore shares. The share issue will bring down the promoter stake in the bank to around 28.97 per cent from 29.96 per cent at present.

The capital raising may see the bank’s promoter group, led by its chief executive Uday Kotak, reduce its holding in the bank in line with a plan mandated by the RBI.

As part of the bank’s plan approved by the RBI, the promoter stake has to come down to 26 per cent from the nearly 30 per cent held by them for the quarter ended December 2019. Their holding stood at 57,24,65,964 shares.

Meanwhile, housing finance company HDFC will come out with an issue of secured redeemable non-convertible debentures on a private placement basis, bids for which will open on Thursday. While the size of the issue is Rs 1,250 crore, HDFC has option to retain oversubscription of Rs 3,750 crore.