The Reserve Bank of India (RBI) approves Kotak Mahindra Bank’s proposal to acquire equity stakes in two other lenders, sources report. According to the RBI clearance, Kotak Mahindra Bank can buy up to 9.99% in AU Small Finance Bank (AU SFB) and up to 9.99% in Federal Bank, with the acquisition made through the bank’s aggregate share holdings. The approvals indicate RBI clearance for the specific stake limits in both entities, subject to the terms and process associated with such regulatory permissions.
The Hindu also reports the transaction context, noting that shares of AU Small Finance Bank were trading around ₹1,034.60 on the BSE, reflecting a modest increase at the time of reporting. The reports together describe the same core development: RBI nod for Kotak Mahindra Bank to hold stakes up to the stated thresholds in AU SFB and Federal Bank, rather than a stake above those limits.
