City Union Bank has received formal approval from the Reserve Bank of India (RBI) allowing Kotak Mahindra Bank Limited to acquire a major shareholding in the bank. Under this authorization, Kotak Mahindra Bank is permitted to hold up to 9.99% of the total paid-up share capital or voting rights in City Union Bank. This development marks a significant shift in the shareholding landscape for the institution.
RBI Approval Details
City Union Bank officially announced on May 7, 2026, that it has received communication from the Reserve Bank of India regarding a strategic investment. The regulatory body has granted its approval for Kotak Mahindra Bank Limited to increase its stake in the bank. This permission allows for an aggregate shareholding of up to 9.99% of the company’s paid-up share capital.
Compliance and Regulatory Standards
The approval granted to Kotak Mahindra Bank is contingent upon continued adherence to all prevailing banking and financial regulations. This includes the provisions laid out under the Banking Regulation Act, 1949, and the 2025 Directions regarding the acquisition and holding of shares in commercial banks. The transaction must also align with the Foreign Exchange Management Act and all other relevant statutory guidelines currently in force.
Source: BSE
