Kotak Mahindra Bank, one of the leading private sector lenders said on Wednesday that the Reserve Bank of India (RBI) has granted its final approval regarding the dilution of promoters' shareholding in the bank.

"Further to our intimation dated 30th January 2020, please note that the Reserve Bank of India has granted its final approval vide its letter dated 18th February 2020 in the matter relating to dilution of promoters' shareholding in the Bank," Kotak Mahindra Bank said in stock exchange filing.

On January 30, Kotak Mahindra Bank said that the bank decided to cap the promoters' voting rights to 15% from April 1 onwards. "The RBI gave its in-principle acceptance for reducing promoters' shareholding to 26% of the paid-up voting equity share capital of the bank within six months from the date of final approval of the regulator," bank said in last month filing.

Shares of the company gained Rs 8.95, or 0.53%, to settle at Rs 1,700.00. The total volume of shares traded was 78,609 at the BSE (Wednesday).