Anand Mahindra has ceased to be a promoter of Kotak Mahindra Bank but will continue as a non-executive director, the private sector lender said in a filing with the Bombay Stock Exchange today.

The board of Kotak Mahindra has already approved the exit of Mahindra as a promoter following a request from him, the filing said.

Mahindra along with his family members held a 3.68-per cent stake in Kotak Mahindra Bank and the holding would now come under public shareholding, the bank said.

"With Mahindra ceasing to be a promoter of the bank, the promoter shareholding of the bank now stands reduced to less than 49 per cent in compliance with the licence condition stipulated by the RBI," it added.

As of March quarter, the promoters held a 52.39 per cent stake in Kotak Mahindra Bank.

Uday Kotak is executive vice chairman and managing director of the bank and its principal founder and promoter. 

Over the past 23 years, he has built a team of professionals who have been given independent charge of various businesses in Kotak Mahindra group.

He was responsible for starting the business as a start-up venture in a limited range of activities and then building it up into a full financial services group.
   
The Reserve Bank of India had last month allowed foreign institutional investors (FIIs) to buy up to 33 per cent of private sector lender Kotak Mahindra Bank.

Kotak Mahindra had sought RBI approval for raising its foreign fund ownership limit.

''The Reserve Bank of India today notified that under Portfolio Investment Scheme (PIS), foreign institutional investors (FIIs) can now purchase equity shares and convertible debentures of Kotak Mahindra Bank Ltd, through primary markets and stock exchanges in India, '' RBI said in a press release.

''The purchases can be made up to 33 per cent of the paid-up capital of the company, as it has passed resolutions to this effect at its board of directors' and the general body meetings,'' it added.

Raising of FII investment limit to 33 per cent is, however, subject to the condition that the aggregate foreign investment in the bank will not exceed the composite sectoral cap of 74 per cent as prescribed by the government from time to time, the RBI release added.

Foreign funds can hold up to a maximum of 74 per cent of an Indian bank, subject to RBI approval.