Kotak Mahindra Bank Gets RBI Approval To Acquire 9.99% ‘Aggregate Holding’ In AU Small Finance Bank

AU Small Finance Bank (SFB) on Thursday, May 7, informed the bourses that Kotak Mahindra Bank has received approval from RBI to acquire upto 9.99% stake in the Mumbai-headquartered bank.

According to an exchange filing, AU SFB noted that RBI has given approval "Kotak Mahindra Bank Limited (“KMBL”) (along with its subsidiaries, the funds/schemes managed by KMBL’s subsidiaries, collective referred 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."

As per the company's quarter ended March shareholding pattern, Kotak Flexicap Fund holds 1.60% stake. The other funds who also own a stake in the bank include Nippon Life, HDFC MF, Invesco, and DSP Midcap, alongside insurance firms such as SBI Life Insurance and HDFC Life Insurance.

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As of 12:21 AM, the shares of AU Small Finance Bank was trading 1.26 % higher at Rs 1,036.90 apiece. Meanwhile, Kotak Bank's stock was higher by 1% at Rs 380.25 apiece.

AU SFB Q4 results

In the previous month, the small finance bank reported a 65% year-on-year (YoY) rise in profit to Rs 832 crore, and 25% quarter-on-quarter (QoQ).

Meanwhile, the Net interest income (NII), which is considered the difference between interest earned and expended, rose by 23% YoY and 10% QoQ to Rs 2,582 crore.

Net interest margin (NIM) expanded by 24 bps to 5.96% in Q4FY26 as compared to 5.7% in same period last year, as per the company's official release.

Simultaneously, the asset quality ratios also improved. In Q4, the GNPA ratio stood at 2.03% as against 2.30% in December 2025. The NNPA ratio was at 0.74% in March, while it stood at 0.88% in December.

During the quarter-ended March, the total deposits surged 23% YoY, and 10% QoQ to Rs 1,52,661 crore.

Meanwhile, gross loan portfolio was at Rs 1,40,327 crore at the end of the same period, posting a 21% YoY growth and an QoQ rise of 8%.