Kotak Mahindra Bank Share Price in Focus; Gets RBI Nod to Acquire Upto 9.99% Stake in South Indian Bank

Kotak Mahindra Bank Limited 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 The South Indian Bank Limited.  

This decision, dated May 6, 2026, is subject to various regulatory conditions. 

RBI Approval Details 

The South Indian Bank Limited has officially announced that it received an intimation from the RBI on May 6, 2026.  

The approval allows Kotak Mahindra Bank to acquire an aggregate holding of up to 9.99% of the paid-up share capital or voting rights in the bank.  

This acquisition is contingent upon adherence to several regulatory frameworks. 

The approval is governed by the Banking Regulation Act, 1949, and the Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025. Additionally, compliance with the Foreign Exchange Management Act, 1999, and regulations issued by the Securities and Exchange Board of India is mandatory. 

Regulatory Compliance Requirements 

The RBI's approval is conditional upon Kotak Mahindra Bank's compliance with the relevant statutes and guidelines.  

These include adherence to the Banking Regulation Act, 1949, and the RBI's directions on the acquisition and holding of shares or voting rights. The Foreign Exchange Management Act, 1999, and SEBI regulations also play a crucial role in this process. 

Read More: Kotak Mahindra Bank Share Price in Focus; Secures RBI Nod for 9.99% Stake in Federal Bank! 

Kotak Mahindra Bank Share Price Performance 

As of May 07, 2026, at 3:30 PM, Kotak Mahindra Bank share price on NSE was closed at ₹379.40 up by 0.74% from the previous closing price. 

Conclusion 

Kotak Mahindra Bank's approval to acquire up to 9.99% stake in South Indian Bank marks a notable event in the banking sector. This acquisition, subject to regulatory conditions, reflects the ongoing dynamics in the financial industry. 

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