Kotak Mahindra Bank shares tanked 3.89% to Rs 1,935.95 in morning trade, a day after the counter sent sharp gains on reports that it might see a potential repetition of its weightage in the MSCI Global Standard Index.

India’s third-largest private lender is anticipated to witness a potential doubling of its weightage from 1.38% to 2.68% in the MSCI Global Standard Index, possibly resulting in inflows of $800 million. Kotak Mahindra Bank shares closed 2.01% higher on May 31.

Ownership of foreign portfolio investors (FPIs) in the lender has decayed from 40.90% in the December 2022 to 39.42% in the March 2023 quarter.

The bank’s subsidiary, Kotak Mahindra Life Insurance Company Limited, temporarily mentioned that over 6.5 lakh eligible active policyholders would accept a bonus of Rs 840 crore for FY23.

This signifies a significant 24% increase associated with the bonus proclaimed for the previous fiscal year, FY22.
Kotak Mahindra Life Insurance has consistently presented bonuses to its policyholders for the past 22 years, preliminary from 2002.