Meanwhile, the S&P BSE Sensex was up 285.59 points, or 0.79% to 36,248.52.

On the BSE, 3.28 lakh shares were traded in the counter so far compared with average daily volumes of 4.49 lakh shares in the past two weeks. The stock had hit a high of Rs 1265.95 and a low of Rs 1209.30 so far during the day. The stock hit a 52-week high of Rs 1,424 on 17 July 2018. The stock hit a 52-week low of Rs 992.50 on 9 January 2018.

According to media reports, the Bombay High Court denied interim stay on the Reserve Bank of India (RBI)'s 14 August 2018 letter that asked Kotak Mahindra Bank to reduce its promoter holding as percentage of paid up voting equity capital by 31 December 2018, reports added.

Kotak Mahindra Bank had on 2 August 2018 announced completion of its Perpetual Non Convertible Preference Shares (PNCPS) issue on that day resulting in dilution of promoter stake to 19.70% of paid up capital. RBI later communicated to the bank that its PNCPS issuance does not meet RBI's promoter holding dilution requirement. Last week, the bank filed a writ petition with the Bombay High Court against the RBI to validate its position.

As per RBI guidelines, Uday Kotak needs to dilute his stake to 20% by 31 December 2018. As on 30 September 2018, Uday Suresh Kotak held 29.729% stake in Kotak Mahindra Bank.

Kotak Mahindra Bank's net profit rose 14.82% to Rs 1141.65 crore on 22.79% increase in total income to Rs 7016.17 crore in Q2 September 2018 over Q2 September 2017.

As on 30 September 2018, Kotak Mahindra Bank has a national footprint of 1,425 branches and 2,236 ATMs.