Canadian pension funds Canada Pension Plan Investment Board (CPPIB) and Caisse de Depot et Placement du Quebec (CDPQ) have acquired a 1.5% stake in Indian private sector lender Kotak Mahindra Bank for INR22.5bn ($338m) from the bank’s executive vice-chairman and managing director Uday Kotak.

CPPIB bought 9.2 million shares and CDPQ picked up 18.4 million shares, with each share valued at INR817. CPPIB previously held a 5.76% stake in the bank.

The latest share sale dilutes the promoter group’s holding in the bank to 32.11% from 33.61%.

The stake sale follows Reserve Bank of India’s directive to the promoters to slash their stake in the banks to 30% by the end of June 2017 and bring it further down 20% by December 2018. Promoters need trim their stake to 15% by end of March 2020.

In a separate statement, the bank also said that it had raised the investment ceiling for foreign institutional investors to 42% from 40%.