Kotak Mahindra Bank Gets RBI Approval to Acquire Up to 9.99% Stake in Multiple Banks Including Federal Bank, J&K Bank

Kotak Mahindra Bank has been granted approval by the Reserve Bank of India (RBI) to acquire up to 9.99% of the paid-up share capital or voting rights in Federal Bank, Jammu & Kashmir Bank, AU Small Finance Bank and City Union Bank.  

This approval is subject to compliance with various regulatory provisions. 

Details of RBI Approval for Stake Acquisition 

On May 6, 2026, the RBI accorded its approval to Kotak Mahindra Bank to acquire an aggregate holding of up to 9.99% in Federal Bank, Jammu & Kashmir Bank, AU Small Finance Bank and City Union Bank.  

This decision allows Kotak Mahindra Bank to expand its investment in these banks, subject to certain conditions. 

The approval is contingent upon adherence to the Banking Regulation Act, 1949, the Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025, the Foreign Exchange Management Act, 1999, and regulations issued by the Securities and Exchange Board of India (SEBI). 

Conditions and Compliance Requirements 

In the case of Jammu and Kashmir bank, Kotak Mahindra Bank must comply with all relevant statutes, regulations, and guidelines. If the bank fails to acquire the specified shareholding within 1 year from the date of the RBI letter, the approval will be cancelled.  

Additionally, if the bank's holding falls below 5% at any point, prior RBI approval will be required to increase it back to 5% or more. 

Read More: Kotak Mahindra Bank Receives RBI Approval to Acquire Up to 9.99% Stake in AU Small Finance Bank! 

Why Kotak Mahindra Bank Wants to Invest in Other Banks? 

This strategic move by Kotak Mahindra Bank signifies its intent to strengthen its presence in the Indian banking sector.  

By acquiring stakes in Federal Bank, Jammu & Kashmir Bank, AU Small Finance Bank and City Union Bank, Kotak Mahindra Bank aims to diversify its investment portfolio and enhance its market position. 

Kotak Mahindra Bank Share Price Performance 

As of May 11, 2026, at 1:24 PM, Kotak Mahindra Bank share price on NSE was trading at ₹384.75 up by 1.04% from the previous closing price. 

Conclusion 

Kotak Mahindra Bank's acquisition of stakes in Federal Bank, Jammu & Kashmir Bank, AU Small Finance Bank and City Union Bank marks a significant development in its investment strategy. The RBI's approval facilitates this expansion, subject to compliance with regulatory requirements. 

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