Kotak Bank shareholders approve stake sale to Sumitomo

Private sector lender Kotak Mahindra Bank today said that its shareholders have approved the selling of 4.5% stake to Japanese financial services major Sumitomo Mitsui Banking Corp for Rs1,366 crore.

At an extraordinary general meeting, the shareholders approved the allotment of 3.28 crore equity shares at a price of Rs416.50 a share, aggregating to Rs1,366 crore, Kotak Mahindra Bank said in a filing to the Bombay Stock Exchange.

Last month, Kotak Bank had entered into an agreement with Sumitomo to sell 1.64 crore shares, or 4.5%, at Rs833 a share, for Rs1,366 crore.

The shareholders today approved subdivision of shares, pursuant to which the number of shares to be allotted to Sumitomo stood at 3.28 crore, the filing added. The domestic bank had, last month, said that the sale would help the domestic bank boost its cash flow to fund its expansion plans.

This is the first time that a Japanese bank has made investments in a domestic bank. The deal values Kotak Mahindra at over Rs30,000 crore. Shares of Kotak Bank closed at Rs764, down 0.3% on the BSE. The Sensex closed down 120 points at 17,957.

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M&M June quarter profit up 40%

Auto major Mahindra & Mahindra (M&M) today reported 40.30% jump in net profit at Rs562.39 crore for the quarter ended 30th June.

The company had posted a net profit of Rs400.85 crore in the corresponding quarter of the last fiscal, M&M said in a statement.

The total income during the first quarter also increased by 21.63% to Rs5,160.10 crore from Rs4,242.59 crore in the year-ago period, it added.

"The good financial results of the company for the quarter are due to higher volumes, focused cost control, prudent financial management resulting in lower interest expenses and a fuller realisation of the synergies arising from its acquisition of the erstwhile Punjab Tractors Ltd," M&M said.

 During the quarter, the company sold 53,948 units of utility vehicles compared to 48,720 units, up 10.73%. The company also posted 13.73% rise in tractor sales at 47,916 units against 42,130 units in the same period last year.

"However, high and rising inflation, the likely hardening of interest rates and increasing volatility in global financial markets remain sources of concern," the firm said. M&M shares were up 0.6% at Rs644 a share on the BSE. The Sensex closed down 120 points at 17,957.

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Firstsource Solutions June quarter net dips 16% at Rs32 crore

IT firm Firstsource Solutions today reported a decline of 15.78% in its consolidated net profit at Rs32 crore for the quarter ended 30 June 2010, over the same period last year.

Revenues from operations rose to Rs490.7 crore in the April-June quarter, from Rs484 crore. The company's shares closed 1.1% down on the BSE at Rs25.80 per share. The Sensex closed down 120 points at 17,957.

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