ING Group likely to sell 0.7 per cent stake in Kotak Mahindra Bank

Dutch financial major ING Group is likely to sell 0.7 per cent stake in Kotak Mahindra Bank through an open market transaction, investment banking sources said.

ING Mauritius Investments, the investment arm of the Dutch bank, held 3.73 per cent, or over 7.11 crore shares in the private lender at the end of September, data available with the stock exchanges showed.

According to sources, the USD 900 million penalty payment is hitting ING's financial in December quarter and the company needs cash to offset this outflow.

"The Dutch financial firm may sell 0.7 per cent stake in the private sector lender. The deal is expected to be announced on Thursday," a source said.

Earlier in 2016, ING had off-loaded 2.5 per cent stake in Kotak Mahindra Bank for an estimated Rs 3,653 crore.

Kotak Mahindra Bank shares settled at Rs 1,162.65 on the BSE on Thursday, up 2.93 per cent from the previous close.