Kotak Mahindra Bank loses 2%; pvt lender signs MoU with GIFT SEZ

NEW DELHI – Shares of Kotak Mahindra Bank fell along with the broader market, with the stock losing 2.3 per cent in early trade on Friday. The private lender signed a Memorandum of Understanding (MoU) with GIFT SEZ Limited (GIFT SEZ) for boosting the financial services ecosystem at International Financial Services Centre (IFSC) at Gandhinagar.

The counter fell to a low of Rs 1,849.55 against Rs 1,892.60 at the previous close on the NSE. The stock was last trading 1.73 per cent lower.

Kotak Mahindra Bank and GIFT SEZ, a wholly-owned subsidiary of Gujarat International Finance Tech-City, will cooperate towards wide-ranging activities to improve overall financial services, reports said.

According to the MoU, a focus area will be easing market access and cross-border activities for the fund management community.

Both KMBL and GIFT SEZ will jointly work to promote GIFT IFSC jurisdiction for AIF fund structures, hold seminars and knowledge series, expand financial infrastructure including custodian activities like setting up of global custody services, it said.

In May 2021, Kotak Mahindra Bank had issued the first-ever FPI licence to a GIFT IFSC AIF, marking a new beginning in the journey of the fund business in GIFT IFSC, reports said.

“The MoU between Kotak Mahindra Bank and GIFT SEZ will further enhance and strengthen our relationship as we work closely to improve the financial services eco-system at GIFT for AIF Structures and Global Custodian Services. Our endeavour is to provide easy market accessibility for both the domestic and overseas financial entities that plan to set up their operations in the financial & technology gateway of India,” KVS Manian, Whole Time Director & Member of Group Management Council, Kotak Mahindra Bank, was quoted as saying in reports.