AU Small Finance Bank has received regulatory approval from the Reserve Bank of India to allow Kotak Mahindra Bank Limited, along with its subsidiaries and managed funds, to acquire a stake of up to 9.99% in the bank. This approval, communicated via a letter dated May 6, 2026, permits the Kotak Mahindra Group to hold up to 9.99% of the total paid-up share capital or voting rights in AU Small Finance Bank.
Regulatory Approval Details
AU Small Finance Bank (AU SFB) officially announced that it received communication from the Reserve Bank of India (RBI) on May 6, 2026. The regulatory body has granted its approval for Kotak Mahindra Bank Limited (KMBL) to increase its investment in the bank. This permission covers KMBL, its subsidiaries, and any funds or schemes managed by its subsidiaries, collectively referred to as the Kotak Mahindra Group.
Impact of the Acquisition
The approval authorizes the Kotak Mahindra Group to acquire an ‘aggregate holding’ of up to 9.99% of the paid-up share capital or voting rights in AU Small Finance Bank. This strategic move marks a significant development in the shareholding structure of the bank. The bank has confirmed that it is moving forward with the process in accordance with the approval granted, ensuring compliance with all necessary statutes and guidelines applicable to the banking sector.
Source: BSE
