Add Zee Business as a Preferred Source
BIG Update! After AU SFB and Federal Bank, Kotak Mahindra gets RBI approval for stake buy in J&K Bank
Private sector lender Kotak Mahindra Bank has received approval from the Reserve Bank of India to acquire up to 9.99 per cent stake in Jammu and Kashmir Bank, according to a regulatory filing on Thursday.
)
Kotak Mahindra Bank has received approval from the RBI to acquire up to 9.99 per cent stake in JK Bank. Image Credit: ANI
Written By: Anubhav Maurya
Updated: Thu, May 07, 2026
04:43 PM IST
04:43 PM IST
ZeeBiz WebDesk
Private sector lender Kotak Mahindra Bank has received approval from the Reserve Bank of India (RBI) to acquire up to 9.99 per cent stake in Jammu and Kashmir Bank, according to a regulatory filing on Thursday.
The lender said the approval was granted through an RBI letter dated May 6, 2026. The approval allows Kotak Mahindra Bank to acquire an aggregate holding of up to 9.99 per cent of the paid-up share capital or voting rights in Jammu and Kashmir Bank.
Kotak Mahindra Bank said the approval was given in response to its application submitted to the RBI. The lender added that the approval is subject to various regulatory conditions and compliance requirements.
TRENDING NOW
Kotak Mahindra Bank further said that after the proposed acquisition, if its holding in Jammu and Kashmir Bank falls below 5 per cent at any point in time, it will require prior approval from the RBI to increase the stake again to 5 per cent or more.
The lender also clarified that its aggregate holding in Jammu and Kashmir Bank should not exceed 9.99 per cent of the paid-up share capital or voting rights of the bank at any time.
AU Small Finance and Federal Bank Acquisition
Private sector lender has also received approval from the Reserve Bank of India (RBI) to increase its aggregate holding to up to 9.99 per cent in AU Small Finance Bank and Federal Bank, according to regulatory filings on Thursday.
AU Small Finance Bank and Federal Bank said they received the RBI approval letter on May 6, 2026.
AU Small Finance Bank said the RBI has approved Kotak Mahindra Bank, along with its subsidiaries and funds or schemes managed by its subsidiaries, collectively referred to as the Kotak Mahindra Group, to acquire an aggregate holding of up to 9.99 per cent of the paid-up share capital or voting rights in the bank.
Federal Bank, in a filing to the BSE, said the RBI has accorded approval to Kotak Mahindra Bank for acquiring an aggregate holding of up to 9.99 per cent of the paid-up share capital or voting rights of the bank.
J&K Bank Q4FY26 Results
The RBI approval comes at a time when both banks have reported strong financial performance for the March quarter of FY26.
Jammu and Kashmir Bank reported a 36.5 per cent year-on-year rise in net profit at Rs 798 crore for the fourth quarter ended March 31, 2026, compared with Rs 585 crore in the corresponding quarter of the previous financial year.
The bank also posted its highest-ever annual profit of Rs 2,363 crore for FY26. Total income during the quarter stood at Rs 3,531 crore. Net interest income (NII) increased marginally by 0.5 per cent year-on-year to Rs 1,487.5 crore.
Asset quality and business growth improve
Asset quality of the bank improved during the quarter. Gross non-performing assets (GNPA) ratio declined to 2.50 per cent from 3 per cent in the December quarter, while net non-performing assets (NNPA) ratio stood at 0.64 per cent.
The bank’s total business grew 13.61 per cent year-on-year to Rs 2,90,341 crore. Net advances rose 18 per cent year-on-year during the period. Jammu and Kashmir Bank’s CASA ratio stood at 45.65 per cent, while the capital adequacy ratio was reported at 16.55 per cent.
Kotak Mahindra Bank Q4FY26 Results
Meanwhile, Kotak Mahindra Bank also reported a strong set of numbers for the March quarter of FY26. The lender posted a 13 per cent year-on-year rise in standalone net profit at Rs 4,027 crore, beating market expectations.
The growth was supported by an improvement in advances and asset quality. Net interest income rose 8.1 per cent year-on-year to Rs 7,876 crore during the quarter.
The bank’s total deposits increased 15 per cent year-on-year to Rs 5,72,456 crore. Its CASA ratio stood at 43.3 per cent. Gross NPA ratio improved to 1.20 per cent, while net NPA ratio stood at 0.25 per cent during the quarter.
Kotak Mahindra Bank’s board also recommended a dividend of Rs 0.65 per equity share for FY26.
On a consolidated basis, the lender reported a 10 per cent year-on-year increase in profit after tax at Rs 5,423 crore in the March quarter. Full-year consolidated profit after tax for FY26 stood at Rs 19,288 crore.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
Anubhav Maurya
Anubhav Maurya
RECOMMENDED STORIES
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
Budget strikes fine balance between growth, employment, and capex: FM
