Mumbai: Dutch financial services group ING is selling its entire 3.1% stake in India’s Kotak Mahindra Bank to raise up to $173 million, a source with direct knowledge of the matter said on Wednesday.

The shares would be sold at Rs730 to Rs750 each, said the source, who refused to be named as he was not authorised to speak to the media.

The price represents a 4% discount at the upper range of the band to Wednesday’s closing price of Rs783.20.

“The book-building for institutional investors has started," the source said.

An ING spokesman said the company did not comment on market rumours.

Citibank is the sole adviser on the deal, the source said. Officials at Citi in India could not be reached for comment.

On Tuesday, another Dutch lender, Rabobank, moved a step closer to setting up its own banking unit in India as it cut its stake in mid-sized local lender Yes Bank for about $213 million.

Citi is adviser on that deal, a separate source said on Tuesday.

Standard Chartered , Credit Suisse and Citibank are expanding their services in India and Goldman Sachs has applied for a banking licence in the country, whose economy is forecast to grow more than 8% this financial year.