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Kotak Bank gets RBI nod to acquire up to 9.99% in AU Small Finance Bank and Federal Bank
Kotak Mahindra Bank received regulatory approval from the Reserve Bank of India to acquire up to 9.99% of AU Small Finance Bank and Federal Bank. RBI approval letters were issued on May 6, 2026, and filings on May 7 confirmed the approvals. Market notes showed modest stock moves for both lenders and Kotak Bank following the announcements.
Why It Matters
The approvals allow Kotak Mahindra Bank to increase its stake in two banks, potentially influencing governance and strategic direction in India's banking sector.
Timeline
3 Events
Regulatory filings confirm RBI approvals; market reacts
May 7, 2026
AU Small Finance Bank and Federal Bank filed regulatory disclosures confirming RBI's approval was granted on May 6. Federal Bank shares rose 1.47% to ₹297.40 and Kotak Mahindra Bank shares rose 1.12% to ₹380.40.
RBI approves Kotak Mahindra Bank for up to 9.99% in Federal Bank
May 6, 2026
Reserve Bank of India issues approval letters to Kotak Mahindra Bank Ltd for acquiring up to 9.99% of Federal Bank's paid-up share capital or voting rights.
RBI approves Kotak Mahindra Bank for up to 9.99% in AU Small Finance Bank
May 6, 2026
Reserve Bank of India issues approval letters to Kotak Mahindra Bank Ltd for acquiring up to 9.99% of AU Small Finance Bank's paid-up share capital or voting rights.