Dutch banking group ING has reduced its stake in Indian private sector lender Kotak Mahindra Bank from 6.4% to 3.9% through the sale of 46.7 million ordinary shares of Kotak.

The sale fetched gross proceeds of about EUR490m for ING, with shares sold at INR782.32 a share.

The deal will not affect ING's profit and loss account, shareholders' equity or capital ratios, the Dutch lender said.

ING picked up the stake in Kotak through the Indian bank’s merger with ING Vysya Bank in 2015. ING’s remaining stake in the Indian lender will now be subject to a 90 day lock-up after deal settlement that is expected on 4 October 2016.

“Following a Memorandum of Understanding (MoU) signed on 5 June 2015, Kotak and ING will continue to co-operate on cross-border business opportunities and to leverage each other's network's for the benefit of their respective client bases,” ING said.