RBI Allows Kotak Bank To Hike Stake To 9.99 Pc Each In AU Small Finance, Federal Bank

The RBI has approved Kotak Mahindra Bank to hike its "aggregate holding" to 9.99% each in AU Small Finance Bank and Federal Bank.

In separate regulatory filings on Thursday, AU Small Finance Bank and Federal Bank announced that they have received the approval letter from the Reserve Bank of India on May 6.

The central bank has accorded its "approval to Kotak Mahindra Bank Ltd (KMBL) (along with its subsidiaries, the funds/schemes managed by KMBL’s subsidiaries, collectively referred to as 'Kotak Mahindra Group') to acquire 'aggregate holding' of up to 9.99% of the paid-up share capital or voting rights in AU SFB," AU Small Finance Bank said.

Similarly, Federal Bank, in a BSE filing, said the RBI has accorded its approval to Kotak Mahindra Bank for acquiring “aggregate holding” of up to 9.99% of the paid-up share capital or voting rights of the bank.

Shares of AU Small Finance Bank were trading at ₹1,034.60, up 0.99% over the previous close on BSE.

Federal Bank shares were trading 1.47% up at ₹297.40. Kotak Mahindra Bank scrip was quoting 1.12% higher at ₹380.40.