Reserve Bank of India's (RBI) has approved private lender Kotak Mahindra Bank to acquire up to 9.99% stake in AU Small Finance Bank.
In an exchange filing on Thursday, May 7, AU Small Finance Bank informed that the central bank gave nod to Kotak Mahindra Bank, along with its subsidiaries, funds/schemes managed by its subsidiaries, collective referred as “Kotak Mahindra Group” to acquire ‘aggregate holding' of up to 9.99% of the paid-up share capital or voting rights in the company.
It further said that the approval is subject to compliance with the relevant provisions of the Banking Regulation Act,1949 and RBI's directions, provisions of the Foreign Exchange Management Act, 1999, Securities and Exchange Board of India regulations, and other relevant statutes, regulations and guidelines.
The filing was issued during the market hours on Thursday, May 7. Shares of the lender rose 0.84% intraday at Rs 1032.50 apiece.
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AU Small Finance Bank Q4 Results
The lender reported 65% jump in its net profit for the fourth quarter of fiscal 2025-26, according to an exchange filing from the company on Monday.
The bank had a net profit of Rs 832 crore YoY (Year-On-Year), compared to Rs 504 crore in the year-ago period. Its net interest income rose 23% to Rs 2,582 crore compared to Rs 2,094 crore in the preceding fiscal. Its gross non-performing assets were at 2.03% sequentially, compared to the previous quarter's 2.3%.
The firm also declared a dividend of Rs 1, subject to the approval of shareholders in the upcoming Annual General Meeting.
"The dividend on equity shares will be paid/dispatched after the same is approved by the shareholders at the ensuing AGM of the bank," the filing said.
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