RBI nod for Kotak’s 9.9% stake acquisition in CUB

Chennai: The RBI has accorded approval to Kotak Mahindra Bank to acquire an aggregate holding of up to 9.9% of the paid-up share capital or voting rights in the century-old City Union Bank (CUB).CUB informed the stock exchanges on Thursday that it received the communication from the RBI on Wednesday.The approval is subject to compliance with the relevant provisions of the Banking Regulation Act, 1949, the Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025, provisions of the Foreign Exchange Management Act, regulations issued by SEBI, and other applicable statutes, regulations and guidelines, the bank added.According to CUB sources, the approval has been granted on the condition that the acquirer will not have a seat on the bank's board. Describing it as an investment opportunity for the respective institutions, sources said RBI approval is required if an institution's shareholding exceeds 5%.For instance, HDFC AMC and SBI AMC held 9.4% and 7.8%, respectively, in CUB as of Dec 31, 2025.
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