The Federal Bank has announced that it received approval from the Reserve Bank of India (RBI) for Kotak Mahindra Bank Limited to acquire an aggregate holding of up to 9.99% of its paid-up share capital or voting rights. This approval, communicated to Federal Bank on 6 May 2026, is subject to several regulatory conditions.
The RBI’s nod for this acquisition is contingent upon compliance with various statutory and regulatory provisions. These include 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), among others.
Kotak Mahindra Bank’s proposed acquisition aligns with regulatory frameworks that govern the acquisition and holding of shares or voting rights in commercial banks. The approval is a significant step for Kotak Mahindra Bank as it seeks to expand its investment portfolio within the Indian banking sector.
Federal Bank has requested stakeholders to note this development as part of its regulatory compliance under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).