Kotak Mahindra Bank will conduct the business of its wholly-owned subsidiary Kotak Mahindra Investments Ltd (KMIL) within the bank from April 1, 2026, as part of a group simplification strategy.
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ADNAN ABIDI
Kotak Mahindra Bank said the business activities of Kotak Mahindra Investments Limited (KMIL), a wholly-owned subsidiary of the Bank, will be conducted departmentally within the Bank from April 1, 2026, with the move in the interest of group simplification and to drive operational synergies.
Board approves operational shift
The private sector bank, in a regulatory filing, said KMIL has informed it that the aforementioned move was discussed at the KMIL Board of Directors’ meeting held on March 24, 2026.
“The Board of KMIL has unanimously approved that KMIL (a) shall not sanction any new loans with effect from April 1, 2026; and (b) shall continue to service its existing facilities including honouring its obligations under the facility agreements executed on or prior to March 31, 2026,” per the filing.
Compliance with RBI norms
The above decisions will facilitate compliance with the provisions of the RBI Directions by the Bank and are in the interest of group simplification and for driving operations synergies, it added.
As per the provisions set out under the Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) Directions, 2025, if a bank undertakes a form of business through more than one entity in a bank group, the same shall be done with proper rationale, such as business segmentation/specialisation, duly recorded and approved by the board of such bank.
Financials and impact
KMIL’s Net total income and profit after tax (as per IGAAP) for FY 2024-25 stood at Rs. 795 crore and Rs. 501 crore, respectively (approximately 1.0% of the consolidated Net total income and approximately 2.3% of the consolidated profit after tax of the Bank, respectively). Its net worth (as per IGAAP) as on March 31, 2025, stood at Rs. 3,842 crore (approximately 2.4% of the Bank’s consolidated net worth).
The impact of the above decisions on the Bank’s consolidated turnover, profit after tax, and net worth is not material, according to the filing.
Published on March 25, 2026
