AU Small Finance Bank (AU SFB) has announced that it has received approval from the Reserve Bank of India (RBI) for Kotak Mahindra Bank Limited (KMBL), along with its subsidiaries and funds managed by them, to acquire an aggregate holding of up to 9.99% of AU SFB’s paid-up share capital or voting rights. This development was confirmed in a letter from the RBI dated 6 May 2026.
The approval from the RBI is contingent upon compliance with several regulations, including the Banking Regulation Act, 1949, and applicable RBI directions. Additionally, the acquisition must adhere to the provisions of the Foreign Exchange Management Act, 1999, and regulations issued by the Securities and Exchange Board of India, among other relevant statutes and guidelines.
This strategic move by Kotak Mahindra Group, which includes KMBL and its subsidiaries, marks a significant step in expanding its influence and investment in the Indian banking sector. The acquisition is expected to enhance the financial synergy between the two banks, potentially leading to increased market competitiveness and expanded service offerings for customers.
AU Small Finance Bank, known for its focus on providing financial services to underserved and unbanked segments, stands to benefit from this partnership with one of India’s leading banking groups. The collaboration could potentially bring in new resources and expertise, aiding AU SFB in its mission to enhance financial inclusion across the country.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).