Kotak Mahindra Bank has received the Reserve Bank of India's (RBI) approval to acquire up to 9.99% of the paid-up share capital or voting rights in Federal Bank.
This strategic move aligns with regulatory compliance requirements.
On May 6, 2026, Federal Bank announced that the RBI had granted approval to Kotak Mahindra Bank for acquiring an aggregate holding of up to 9.99% of its paid-up share capital or voting rights.
This approval is subject to adherence to the Banking Regulation Act, 1949, and other relevant regulations.
The RBI's nod is contingent upon compliance with the Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025, and the Foreign Exchange Management Act, 1999, among other applicable statutes.
The approval requires Kotak Mahindra Bank to comply with various regulatory frameworks, including those set by the Securities and Exchange Board of India (SEBI).
These conditions ensure that the acquisition aligns with existing legal and financial guidelines.
Federal Bank, headquartered in Kerala, has communicated this development to the National Stock Exchange of India Limited and BSE Limited, ensuring transparency and adherence to SEBI's Listing Obligations and Disclosure Requirements.
This acquisition by Kotak Mahindra Bank marks a significant shift in the Federal Bank's shareholding pattern.
The move is expected to influence the bank's strategic direction and market position.
Read More: Kotak Mahindra Bank Receives RBI Approval to Acquire Up to 9.99% Stake in AU Small Finance Bank!
As of May 07, 2026, at 1:58 PM, Kotak Mahindra Bank share price on NSE was trading at ₹380.15 up by 0.94% from the previous closing price.
Kotak Mahindra Bank's acquisition of a 9.99% stake in Federal Bank, approved by the RBI, underscores a strategic investment move. This transaction is subject to strict regulatory compliance, reflecting the importance of adhering to financial and legal standards in the banking sector.
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Published on: May 7, 2026, 2:35 PM IST
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