On 6th May, RBI approved Kotak Mahindra Bank's application to increase its stake in J and K, Federal, and AU Small Finance Bank each 9.99%. The approval was confirmed by the Federal and AU Small Finance Bank and J and K Bank through separate regulatory filings.
The approval is managed by KMBL subsidiaries, such as Kotak Mahindra Group, to acquire 9.99% of the voting rights of the bank. Federal Bank also disclosed that it has received RBI clearance allowing Kotak Mahindra Bank to increase its stake to 9.99 % of voting rights.
This shift is to build minority stakes in federal, AU small finance, and J and K bank to prevent any entity from crossing the 10 percent without any regulatory compliance clearance. Federal Bank shares increased by 1.47 percent, and AU Small Finance Bank increased by 0.99 percent due to this move.
|