Kotak Mahindra Gets Banking Licence

The Reserve Bank of India (RBI) today issued a banking licence to Kotak Mahindra Finance Ltd (KMFL). This sets the stage for the birth of a new private sector bank after a gap of seven-and-a-half years.

The last private bank was set up in September 1995 when IDBI Bank, promoted by a financial institution, got a banking licence. KMFL is the first instance of an existing non-banking finance company (NBFC) becoming a bank. The bank will be called Kotak Mahindra Bank Ltd.

The KMFL scrip jumped 9.03 per cent (by Rs 14.35)