Kotak Mahindra Bank Limited has received approval from the Reserve Bank of India (RBI) to acquire up to 9.99% of the paid-up share capital or voting rights in City Union Bank Limited. The approval, communicated via RBI’s letter dated 6 May 2026, is subject to compliance with various regulatory provisions.
The acquisition is contingent upon adherence to the Banking Regulation Act, 1949, and the Reserve Bank of India (Commercial Banks- Acquisition and Holding of Shares or Voting Rights) Directions, 2025, which were issued on 28 November 2025 and have been amended from time to time. Additionally, the acquisition must comply with the Foreign Exchange Management Act, 1999, and regulations issued by the Securities and Exchange Board of India, among other applicable statutes and guidelines.
This development marks a significant step for Kotak Mahindra Bank as it expands its investment portfolio within the Indian banking sector. The approval is crucial for the bank to proceed with its intended acquisition, aligning with its strategic growth objectives.
City Union Bank, established in 1904 and headquartered in Kumbakonam, Tamil Nadu, is a prominent player in the Indian banking industry, known for its strong regional presence and customer-centric services.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).