Kotak Mahindra Bank's subsidiary to sell stake in Infina Finance for Rs 1,293.91 crore

Kotak Mahindra Capital Company Limited (KMCC), a wholly-owned subsidiary of Kotak Mahindra Bank, on Saturday said it has entered into definitive agreements on March 21, 2026, to divest a part of its shareholding in Infina Finance Private Limited for an aggregate consideration of Rs 1,293.91 crore.

The stake sale will be executed in multiple tranches involving different investors. KMCC will transfer 2,17,899 equity shares, representing 9.90% of Infina’s share capital, to Derive Trading and Resorts Private Limited and Bright Star Investments Private Limited for a combined consideration of Rs 413.35 crore.

In addition, 2,66,321 equity shares, or 12.10% stake, will be sold to the estate of Rakesh Jhunjhunwala through its trusts for Rs 505.20 crore.

A further 1,97,870 equity shares, representing 8.99% of Infina, will be transferred to KF Trust, an existing shareholder, for Rs 375.35 crore.

Upon completion of these transactions, subject to customary conditions, Infina Finance will cease to be an associate company of the bank, with KMCC’s stake reducing to 19%.

Financial Performance and Capital Plans

Earlier, Kotak Mahindra Bank reported a consolidated net profit of Rs 3,446 crore for Q3 FY26, up 4.3% from Rs 3,305 crore in the same period last year.

Operating profit rose 4% year-on-year to Rs 5,380 crore from Rs 5,181 crore, supported by a 5% increase in net interest income to Rs 7,565 crore.

Asset quality improved sequentially, with gross NPAs at 1.30% compared to 1.39% in Q2 FY26, while net NPAs stood at 0.31% versus 0.32% quarter-on-quarter. In absolute terms, net NPAs were at Rs 1,497 crore, marginally higher than Rs 1,491 crore a year ago, while gross NPAs declined to Rs 6,320 crore from Rs 6,479.5 crore.

The bank also said its board has approved raising up to Rs 15,000 crore through the issuance of unsecured, redeemable, non-convertible debentures (NCDs) on a private placement basis during FY27, subject to shareholder and regulatory approvals.

*With Agency Inputs