Kotak Mahindra Bank Limited has approved the acquisition of a loan portfolio and non-treasury investments from its wholly-owned subsidiary, Kotak Mahindra Investments Limited (KMIL). The Board of Directors approved the proposal at a meeting held on May 30, 2026. The aggregate outstanding amount of the assets being acquired stood at Rs 10,639 crore as of March 31, 2026.
The acquisition will be carried out by way of direct assignment in one or more tranches. The move follows the earlier decision communicated on March 24, 2026, to conduct KMIL's business activities departmentally within the bank from April 1, 2026. The group simplification is being carried out under the Reserve Bank of India Directions.
The transaction is classified as a related party transaction given KMIL is a wholly-owned subsidiary of the bank. It will be executed on an arm's length basis, and the promoter, promoter group, and other group companies do not have any interest in the transaction. No approvals from regulatory or statutory authorities are required for its completion.
The final acquisition amount will be determined based on the outstanding balances as on the date of acquisition. The transaction is expected to be completed during the second quarter of the financial year 2026-27. The board meeting commenced at 10:45 AM and concluded at 4:30 PM on May 30, 2026.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.