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AU Small Finance Bank (SFB) on Thursday, May 7, informed the bourses that Kotak Mahindra Bank has received approval from RBI to acquire upto 9.99% stake in the Mumbai-headquartered bank.

According to an exchange filing, AU SFB noted that RBI has given approval "Kotak Mahindra Bank Limited (“KMBL”) (along with its subsidiaries, the funds/schemes managed by KMBL’s subsidiaries, collective referred as “Kotak Mahindra Group”) to acquire ‘aggregate holding’ of up to 9.99% of the paid-up share capital or
voting rights in AU SFB."

As per the company's quarter ended March shareholding pattern, Kotak Flexicap Fund holds 1.60% stake. The other funds who also own a stake in the bank include Nippon Life, HDFC MF, Invesco, and DSP Midcap, alongside insurance firms such as SBI Life Insurance and HDFC Life Insurance.

As of 12:21 AM, the shares of AU Small Finance Bank was trading 1.26 % higher at Rs 1,036.90 apiece. Meanwhile, Kotak Bank's stock was higher by 1% at Rs 380.25 apiece.

AU SFB Q4 results

In the previous month, the small finance bank reported a 65% year-on-year (YoY) rise in profit to Rs 832 crore, and 25% quarter-on-quarter (QoQ).

Meanwhile, the Net interest income (NII), which is considered the difference between interest earned and expended, rose by 23% YoY and 10% QoQ to Rs 2,582 crore.

Net interest margin (NIM) expanded by 24 bps to 5.96% in Q4FY26 as compared to 5.7% in same period last year, as per the company's official release.

Simultaneously, the asset quality ratios also improved. In Q4, the GNPA ratio stood at 2.03% as against 2.30% in December 2025. The NNPA ratio was at 0.74% in March, while it stood at 0.88% in December.

During the quarter-ended March, the total deposits surged 23% YoY, and 10% QoQ to Rs 1,52,661 crore.

Meanwhile, gross loan portfolio was at Rs 1,40,327 crore at the end of the same period, posting a 21% YoY growth and an QoQ rise of 8%.