Federal Bank to acquire Standard Chartered’s select retail credit cards portfolio
Standard Chartered had earlier sold its personal loan business to Kotak Mahindra Bank.
The Federal Bank as well as the AU Small Finance Bank informed the stock exchange in separate filings here on Thursday, that the Reserve Bank of India (RBI) has cleared the acquisition of 9.99% stakes each in both banks by Kotak Mahindra Bank Ltd.
The Federal Bank stated in its filing that it received formal approval from the RBI allowing Kotak Mahindra Bank to acquire an aggregate holding of up to 9.99% of the bank’s paid-up share capital or voting rights, on May 6, 2026.
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The acquisition is capped at 9.99% of the bank’s total paid-up share capital or voting rights, according to the Federal Bank filing.
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According to the filing, the RBI approval is not unconditional and requires adherence to a broad framework of financial regulations.
This would include compliance with the Banking Regulation Act, 1949, as well as specific Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025.
Also, the transaction must align with provisions set forth by the Foreign Exchange Management Act, 1999, ensuring all aspects of the acquisition meet current statutory requirements and guidelines set by the governing authorities, according to the Federal Bank regulatory filing with the stock exchange.
In a separate regulatory filing on Thursday, AU Small Finance Bank also officially informed the stock exchange that it received a letter from the RBI on May 6 approving Kotak Mahindra Bank’s acquisition of a 9.99% stake in the bank.
According to the AU Small Finance Bank’s stock exchange regulatory filing, “The RBI has accorded its approval to Kotak Mahindra Bank Ltd, along with its subsidiaries, the funds/schemes managed by KMBL’s subsidiaries, collectively referred to as ‘Kotak Mahindra Group’, to acquire ‘aggregate holding’ of up to 9.99 per cent of the paid-up share capital or voting rights in AU Small Finance Bank”.
In a related development, Kotak Mahindra Bank informed the stock exchange in a regulatory filing on Thursday that it received RBI approval to acquire up to a 9.99 per cent stake in the Jammu and Kashmir Bank.
The Kotak Mahindra Bank stated that the RBI approval was granted through an RBI letter dated May 6, 2026, allowing it to acquire an aggregate holding of up to 9.99 per cent of the paid-up share capital or voting rights in the Jammu and Kashmir Bank.
The Kotak Mahindra Bank filing also mentioned that RBI approval was given in response to its application submitted to the RBI, adding that the RBI approval is subject to various regulatory conditions and compliance requirements.
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