Kotak Bank to fold Kotak Mahindra Investments operations into parent bank from April 1

Mumbai-based private sector lender Kotak Mahindra Bank Ltd on Tuesday (March 24) announced that the business activities of its wholly-owned subsidiary, Kotak Mahindra Investments Ltd (KMIL), will be conducted departmentally within the bank from April 1, 2026.

The decision follows board approval by Kotak Mahindra Investments Ltd and is aimed at simplifying group operations and driving operational synergies.

Kotak Mahindra Investments Ltd's board has resolved that the subsidiary will not sanction any new loans from April 1, 2026, but will continue servicing its existing facilities, including honouring obligations under agreements executed before March 31, 2026.

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Kotak Mahindra Bank stated that these measures are in compliance with the Reserve Bank of India’s (RBI) Directions on financial services undertakings by commercial banks.

For FY 2024-25, Kotak Mahindra Investments Ltd reported a net total income of ₹795 crore and a profit after tax of ₹501 crore, contributing around 1% of the bank’s consolidated income and 2.3% of consolidated profit.

Its net worth stood at ₹3,842 crore, approximately 2.4% of the bank’s consolidated net worth. The bank said the integration will not have a material impact on its overall turnover, profit, or net worth.

Shares of Kotak Mahindra Bank Ltd ended at ₹367.35, up by ₹11.00, or 3.09%, on the BSE.

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