India, May 7 -- In a regulatory filing submitted to the NSE and BSE on May 7, 2026, AU Small Finance Bank Limited informed investors that it has received a formal communication from the Reserve Bank of India (RBI) dated May 6, 2026. The central bank has accorded its approval to Kotak Mahindra Bank Limited (KMBL), along with its subsidiaries and managed funds, to acquire an "aggregate holding" of up to 9.99% of the paid-up share capital or voting rights in AU SFB.

This approval is a significant milestone for AU Small Finance Bank as it attracts interest from one of India's largest private sector banking groups. The RBI's clearance is subject to compliance with the Banking Regulation Act, 1949, FEMA regulations, and SEBI guidelines.

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