Reserve Bank of India (RBI) Approves Kotak Mahindra Bank Ltd (KMBL) to Acquire 9.99% Stake in AU Small Finance Bank (AU SFB) and Federal Bank

Exam-focused facts from the 10 May 2026 current affairs briefing.

Key facts

The Reserve Bank of India (RBI) has granted approval to Kotak Mahindra Bank Ltd (KMBL) to acquire an aggregate holding of up to 9.99 per cent in AU Small Finance Bank (AU SFB).
KMBL also received the RBI nod to acquire up to 9.99 per cent of the paid-up share capital or voting rights in Federal Bank.
The approval letters from the RBI regarding these acquisitions were received by both AU SFB and Federal Bank on 6 May 2026.
The Kotak Mahindra Group, comprising KMBL and its subsidiaries, is authorised to hold these stakes through their managed funds and schemes.
Following the announcement, shares of AU SFB traded at ₹1,034.60, Federal Bank at ₹297.40, and KMBL at ₹380.40 on the BSE.