RBI Approves Kotak Mahindra Bank’s 9.99% Stake Purchase in J&K Bank

Kotak Mahindra Bank has received approval from the Reserve Bank of India to acquire up to 9.99% stake in Jammu and Kashmir Bank, according to a regulatory filing issued on May 8.

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The private sector lender said the approval was granted through an RBI letter dated May 6, 2026. The approval allows Kotak Mahindra Bank to acquire an aggregate holding of up to 9.99% of the paid-up share capital or voting rights in Jammu and Kashmir Bank.

The bank said the approval was issued in response to its application submitted to the central bank and remains subject to regulatory conditions and compliance requirements.

Kotak Mahindra Bank also stated that if its holding in Jammu and Kashmir Bank falls below 5% in the future, prior approval from the RBI would again be required before increasing the stake back to 5% or more.

The lender further clarified that its aggregate holding in Jammu and Kashmir Bank cannot exceed 9.99% of paid-up share capital or voting rights at any point.

The latest approval comes after the RBI also permitted Kotak Mahindra Bank to acquire up to 9.99% stake in AU

Small Finance Bank and Federal Bank.

AU Small Finance Bank and Federal Bank informed exchanges that they received RBI approval letters on May 6, 2026.

AU Small Finance Bank said RBI approved Kotak Mahindra Bank, along with subsidiaries and schemes managed by Kotak group entities, to acquire an aggregate holding of up to 9.99% in the bank.

Federal Bank also confirmed that the RBI approved Kotak Mahindra Bank’s proposal to acquire up to 9.99% stake in the lender.

J&K Bank Reports FY26 Profit Growth

Jammu and Kashmir Bank reported a 36.5% year-on-year increase in net profit to ₹798 crore for the quarter ended March 31, 2026, compared with ₹585 crore in the same period last year.

The bank posted its highest-ever annual profit of ₹2,363 crore for FY26. Total income during the quarter stood at ₹3,531 crore, while net interest income rose 0.5% year-on-year to ₹1,487.5 crore.

Gross non-performing assets ratio improved to 2.50% from 3% in the December quarter. Net non-performing assets ratio stood at 0.64%.

The bank’s total business increased 13.61% year-on-year to ₹2,90,341 crore, while net advances rose 18% during the period. CASA ratio stood at 45.65%, and the capital adequacy ratio was reported at 16.55%.

Kotak Mahindra Bank Q4FY26 Performance

Kotak Mahindra Bank reported a 13% year-on-year rise in standalone net profit at ₹4,027 crore for the March quarter of FY26.

Net interest income increased 8.1% year-on-year to ₹7,876 crore during the quarter. Total deposits rose 15% year-on-year to ₹5,72,456 crore, while CASA ratio stood at 43.3%. Gross NPA ratio improved to 1.20%, while net NPA ratio came in at 0.25% during the quarter.

The bank’s board recommended a dividend of ₹0.65 per equity share for FY26. On a consolidated basis, profit after tax increased 10% year-on-year to ₹5,423 crore during the March quarter, while FY26 consolidated profit stood at ₹19,288 crore.