Federal Bank, headquartered in Kerala, announced that the Reserve Bank of India (RBI) has granted Kotak Mahindra Bank approval to acquire up to 9.99% of its paid-up share capital. This decision, communicated to Federal Bank on May 6, positions Kotak as a potential major institutional shareholder in the bank. The approval is contingent upon adherence to the Banking Regulation Act of 1949, RBI guidelines, and other relevant laws. The specific method of acquisition—whether through open market purchases or block deals—has not been disclosed. This development is noteworthy as it signals strategic movements within India's banking sector, where shareholding approvals are closely monitored by investors. Market observers will be attentive to future disclosures regarding Kotak's shareholding progress towards the approved threshold.