ING has decided to sell off its entire 3.1% stake in private sector lender Kotak Mahindra Bank. The decision by the Dutch financial services group comes with the aim to raise $173 million, a source said.

The source on condition of anonymity said that the shares of ING would be sold at a price of Rs 730 to Rs 750 each.

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

The source also said that Citibank is the only advisor for the deal.

Recently, Dutch lender, Rabobank has sold of its stake with Yes Bank.