Kotak Mahindra Bank approves ₹10,639 crore acquisition of KMIL loan portfolio

The bank noted that the transaction will be carried out on an arm’s‑length basis, with the goal of enhancing operational synergies.
| Photo Credit:
ADNAN ABIDI

Kotak Mahindra Bank’s board, meeting on Saturday, gave the green light to a plan to take over, via assignment, KMIL’s loan book and non‑treasury holdings, which together totaled ₹10,639 crore as of 31 March 2026, to be transferred in one or more batches.

This approval comes after the private‑sector lender decided to fold KMIL’s operations—its wholly owned subsidiary—into the Bank’s own departments effective 1 April 2026, a move aimed at streamlining the group and unlocking operational synergies.

In a regulatory disclosure, the Bank indicated that the deal is slated for completion in the July‑September quarter of FY27, subject to mutually agreed terms between the Bank and KMIL.

The precise sum of the loan portfolio and non‑treasury assets to be taken over will be calculated according to the outstanding balances on the acquisition date, the Bank added.

The Bank stressed that the deal constitutes a related‑party transaction with its wholly owned subsidiary and will be executed on an arm’s‑length basis, noting that any necessary clearances from regulators or statutory bodies must be secured before the transaction can be finalised.

Moreover, the Bank’s promoters, promoter group, and other entities within the group hold no stake in this transaction.

Published on May 30, 2026