The woman with the banner told Stuff that security tried to confiscate the sign, but received an apology from the stadium today.
New Zealand Cricket public affairs manager Richard Boock told NZME that the decision to remove the banner - made in conjunction with the staff at the stadium - was a mistake.
"We agree the course of action taken was an overreaction and unnecessary, and that the message certainly wasn't offensive.
"NZC has a venue policy that does not allow the targeting of players - but policies are guidelines; they're not written in stone, and we should have shown better judgement and exercised more discretion.
"We apologise unreservedly and will be discussing this in our debrief with a view to avoiding similar mistakes in the future."
Kuggeleijn contributed 20 runs from seven balls in the Black Caps' record 80-run win, but struggled with the ball, going for 34 from his two overs.