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Informist, Saturday, May 30, 2026

--Kotak Mahindra Bank to acquire arm's ops worth INR 106.39 bln 

NEW DELHI – Kotak Mahindra Bank will acquire the loan portfolio and non-treasury investments of its wholly owned subsidiary Kotak Mahindra Investments Ltd., worth INR 106.39 billion, into the bank's own operations in one or more tranches. The proposed transaction is expected to be completed during Jul-Sept, the bank informed the exchanges Saturday.

"The final amount of loan portfolio and non-treasury investments to be acquired by the bank will be determined based on the outstanding balances as on the date of acquisition," the lender said. Since it is a "related party transaction", no approvals are required to be obtained from any regulatory or statutory authorities for its completion, it added. 

The bank's board had on Mar. 24 approved the lender's integration of its wholly owned subsidiary's business operations from Apr. 1. Accordingly, Kotak Mahindra Investments had stopped sanctioning new loans from Apr. 1, while continuing to service its existing loan book and honour obligations under agreements executed up to Mar. 31.

The move followed the Reserve Bank of India's 2025 directions for banks undertaking financial services, which require clearer structuring of business activities within banking groups. Kotak Mahindra Bank had said the decision was aimed at ensuring compliance with these norms while driving operational synergies and simplifying group structure. 

The private-sector bank's net profit for the March quarter was INR 40.27 billion, up over 13% on year. Its consolidated profit for the quarter was INR 52.38 billion, up 6%. Of this, Kotak Mahindra Investments contributed INR 1.15 billion. Shares of Kotak Mahindra Bank ended at INR 384.70 on the National Stock Exchange on Friday, down 0.9% from Wednesday. The stock market was shut Thursday for Id-ul-Zuha (Bakri Id).  End

Reported by Priyasmita Dutta

Edited by Rajeev Pai

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