Kotak Mahindra Bank to Merge Investment Arm into Core Operations from April 1, 2026; Stock Gains

Kotak Bank to Integrate KMIL Lending Operations In-House from April 1, 2026

For years, Kotak Mahindra Bank has been running its lending business through a separate entity, Kotak Mahindra Investments, a wholly-owned subsidiary that operated as an independent non-banking financial company. That is now set to change. Starting April 1, 2026, the bank has decided to pull this business back in-house, meaning all activities that were being handled by Kotak Mahindra Investments will now be managed directly within the bank itself. 

The Reserve Bank of India's directions had been clear that banking groups should avoid duplicating the same business across multiple entities without a sound reason, and the bank has chosen to act on that by streamlining its structure and bringing everything under one roof.

Kotak Mahindra Investments Limited Contribution to Kotak Bank

Kotak Mahindra Investments reported a net total income of ₹795 crore and a profit after tax of ₹501 crore for FY 2024-25, contributing approximately 1.0% to the consolidated net total income and around 2.3% to the consolidated profit after tax of the parent bank. Its net worth stood at ₹3,842 crore as of March 31, 2025, accounting for nearly 2.4% of the bank’s consolidated net worth.

About Kotak Mahindra Bank

Kotak Mahindra Bank Limited is a diversified financial services group headquartered in Mumbai, offering a wide range of banking and financial services, including retail banking, treasury and corporate banking, investment banking, stock broking, vehicle finance, advisory services, asset management, life insurance and general insurance. Founded by Uday Kotak in 1985 and converted into a full-fledged bank in 2003, it is today India's fourth-largest private sector bank by assets, with a network spanning over 1,869 branches and 3,239 ATMs across the country.

Kotak Bank Share Price Performance Vs to Bank Nifty Index

Kotak Mahindra Bank has a market capitalisation of ₹3,73,390 crore and has delivered a profit growth of 20.8% CAGR over the past five years. In terms of share price performance, the stock has declined by 13.46% over the last one year, compared to a gain of around 4.06% in the Bank Nifty index over the same period.