Kotak Bank Promoter Firm Donated Rs 60 Crore To BJP Via Electoral Bonds

Infina Finance, one of the promoter group entities of Kotak Mahindra Bank — currently facing RBI action, had donated electoral bonds worth Rs 60 crore to the Bharatiya Janata Party. Infina Finance, owned by the Kotak family, is listed as one of the promoter group entities of Kotak Mahindra Bank. However, it does not own any shares in the private sector lender, which has been barred by the RBI from issuing fresh credit cards.

As per the shareholding data with the BSE, as of March 2024, the promoter and promoter group entities hold a 25.89% stake in Kotak Mahindra Bank.

Uday Kotak is the promoter and single largest shareholder of Kotak Mahindra Bank, with a 25.71% stake. The remaining 0.18% stake is held by other promoter group entities.

The Mumbai-based Infina Finance donated electoral bonds worth Rs 60 crore to the BJP. The NBFC firm purchased these bonds in the denomination of Rs 1 crore in 2019, 2020 and 2021, according to the data given by the State Bank of India (SBI) to the Election Commission. The data was made public last month.

Infina Finance Private Ltd, according to its website, was incorporated in 2008 and is in the business of capital market financing and proprietary trading and investments.

Infina, a non-deposit accepting, systemically important non-banking financial company registered with the RBI, had reported a profit of Rs 105.55 crore in 2022-23. The firm posted a total income of Rs 227.84 crore during the fiscal.

On Wednesday, the RBI barred Kotak Mahindra Bank from onboarding new customers through its online and mobile banking channels and issuing fresh credit cards with immediate effect after the regulator found 'serious deficiencies' in the lender's IT risk management.

These actions, the RBI said, are necessitated based on significant concerns arising out of the Reserve Bank's IT examination of the bank for the years 2022 and 2023, and its continued failure to address these concerns in a comprehensive and timely manner.