Kotak Mahindra Bank on Tuesday announced the completion of the sale of its stake in Infina Finance Private Limited, resulting in Infina ceasing to be an associate company of the bank.
The stake sale was executed by Kotak Mahindra Capital Company Ltd., and with the completion of the transaction, Infina Finance Private Limited is no longer classified as an associate of the bank effective March 24, 2026.
The company will divest 9.90% share of Infina through the transfer of 2,17,899 equity shares to Derive Trading and Resorts Private Limited and Bright Star Investments Private Limited, for nearly Rs 413.35 crore.
Around 2,66,321 equity shares, representing 12.10% of the share Infina will be transferred to the Estate of Rakesh Jhunjhunwala through its Trusts, for an amount of Rs. 505.2 crore. The shares will be transferred to Aryaman Jhunjhunwala Discretionary Trust, Aryavir Jhunjhunwala Discretionary Trust, and Nishtha Jhunjhunwala Discretionary Trust.
Kotak Mahindra Investments To Stop New Loans
In a separate development, the bank also announced a restructuring involving Kotak Mahindra Investments Limited (KMIL), as part of compliance with the Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) Directions, 2025, and broader group simplification efforts.
KMIL's Board has approved that the company will not sanction any new loans starting April 1, 2026. However, the company will continue to service its existing loan facilities and honour obligations under agreements executed on or before March 31, 2026.
The bank said that from April 1, 2026, the business activities of KMIL will be conducted departmentally within Kotak Mahindra Bank. The move is aimed at simplifying the group structure and driving operational synergies while ensuring compliance with RBI regulations.
Financial Impact Not Material
KMIL reported net total income of Rs 795 crore and profit after tax of Rs 501 crore for FY 2024–25 under Indian GAAP. This represents around 1.0% of the bank's consolidated net total income and approximately 2.3% of consolidated profit after tax. The company's net worth stood at Rs 3,842 crore as of March 31, 2025, about 2.4% of the bank's consolidated net worth.
Kotak Mahindra Bank said the impact of these decisions on its consolidated turnover, profit after tax and net worth is not material.
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