ICICI Prudential AMC gets RBI approval to buy up to 9.95% stake in Kotak and 3 other banks

ICICI Prudential Asset Management Company has received approval from the Reserve Bank of India to acquire aggregate holding of up to 9.95% in four banks. The approval covers CSB Bank, DCB Bank, Kotak Mahindra Bank and AU Small Finance Bank, the company said in an exchange filing on September 9.

ICICI Bank informed the asset manager about the receipt of RBI letters dated September 8, granting the approvals to ICICI Prudential AMC. The approvals allow the AMC to acquire up to 9.95% of the paid-up equity capital or voting rights in the four banks.

The approvals were granted under the Reserve Bank of India’s Commercial Banks - Acquisition and Holding of Shares or Voting Rights Directions, 2025. The company said the term “aggregate holding” will be construed as per the RBI master direction.


The RBI approval is subject to certain conditions, including compliance with relevant statutory and regulatory provisions.

ICICI Prudential AMC clarified that the acquisition of shares in these banks will be undertaken as an investment manager and not as a direct proprietary holding for its own account.

The company said the purchases may be made for and on behalf of schemes of ICICI Prudential Mutual Fund, including investment strategies under Specialised Investment Fund, schemes under Alternative Investment Funds and clients of Portfolio Management Services of the AMC.

The four banks named in the approval represent different parts of the banking space. Kotak Mahindra Bank is a large private-sector lender, AU Small Finance Bank is a listed small finance bank, while CSB Bank and DCB Bank are smaller private-sector banks.

The approval gives ICICI Prudential AMC flexibility to increase holdings in these lenders across its schemes and managed portfolios, subject to regulatory conditions and investment mandates.

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