Regulatory7 May 2026, 03:49 pm
RBI Approves Kotak Bank to Acquire Up to 9.99% Stake in J&K Bank
AI Summary
The Reserve Bank of India (RBI) has approved Kotak Mahindra Bank Limited's application to acquire up to 9.99% of the paid-up share capital or voting rights in Jammu & Kashmir Bank Limited. This approval is subject to conditions, including compliance with banking regulations, FEMA, and SEBI guidelines. Kotak Mahindra Bank must acquire the shareholding within one year, and any subsequent decrease below 5% will require prior RBI approval. The holding must not exceed 9.99% at any time.
Key Highlights
- RBI approves Kotak Mahindra Bank to acquire up to 9.99% stake in J&K Bank.
- Approval is subject to compliance with banking regulations and other applicable laws.
- Kotak Bank must acquire the stake within one year or the approval will be cancelled.
- RBI approval needed to increase stake back to 5% if it falls below that level.
- Kotak Bank's holding in J&K Bank must not exceed 9.99% at any time.