Karur Vysya Bank has received regulatory clearance for a significant shareholding acquisition, as the Reserve Bank of India grants fresh approval to ICICI Prudential Asset Management Company Ltd for stake acquisition. The approval, dated February 10, 2026, allows ICICI AMC and group entities of ICICI Bank Limited to acquire up to 9.95% shareholding in the private sector bank.

RBI Approval Details

The Reserve Bank of India has accorded approval to ICICI Prudential Asset Management Company Ltd (ICICI AMC), along with group entities of ICICI Bank Limited, for acquiring aggregate holding of up to 9.95% of the paid-up share capital or voting rights of The Karur Vysya Bank Ltd. This approval was granted with reference to the application made by ICICI AMC to the central bank.

Regulatory Conditions and Compliance

The RBI approval comes with stringent regulatory conditions that ICICI AMC must adhere to throughout the acquisition process. The approval is subject to compliance with relevant provisions of the Banking Regulation Act, 1949, and Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025 dated November 28, 2025.

Additional compliance requirements include:

• Adherence to provisions of the Foreign Exchange Management Act, 1999
• Compliance with regulations issued by Securities and Exchange Board of India
• Following any other applicable statutes, regulations and guidelines

Key Restrictions and Timeline

The approval includes specific operational restrictions designed to maintain regulatory oversight. ICICI AMC faces a one-year deadline from the date of RBI's letter to acquire major shareholding, failing which the approval will stand cancelled. The company must ensure that aggregate holding in Karur Vysya Bank never exceeds 9.95% of the paid-up share capital or voting rights at any time.

Further regulatory oversight applies if the aggregate holding of ICICI AMC, along with group entities of ICICI Bank Limited, falls below 5% at any point. In such cases, prior approval from RBI will be required to increase the holding to 5% or more of the paid-up share capital or voting rights.

Background and Previous Approval

This fresh approval replaces an earlier RBI approval that was accorded to ICICI AMC on December 29, 2023, with similar terms and conditions. The bank clarified that the current approval was granted upon expiry of the earlier approval, indicating ICICI AMC's continued interest in acquiring a significant stake in Karur Vysya Bank. The regulatory filing demonstrates the ongoing consolidation trends in India's banking sector, with asset management companies seeking strategic investments in private sector banks.

Karur Vysya Bank has successfully inaugurated its milestone 900th branch in Chennai-Tondiarpet on February 6, 2026, marking a significant achievement in the bank's expansion strategy. The ceremony was led by Mr. Ramesh Babu, Managing Director & CEO of Karur Vysya Bank, with Dr. S. Uma, IAS, Additional Secretary to the Government, Health and Family Welfare Department, gracing the occasion.

Branch Inauguration Details

The new Chennai-Tondiarpet branch commenced operations as scheduled, serving customers in the northern part of Chennai. The branch is strategically positioned to cater to the vibrant commercial and industrial activities in the area, including manufacturing, trade, logistics, and fishing communities.

Leadership Vision and Growth Strategy

Speaking at the inauguration ceremony, Mr. Ramesh Babu emphasized the bank's philosophy of balancing strong values and traditions with progress. "For over a century, Karur Vysya Bank has grown alongside generations of customers by building relationships founded on trust. Even as we embrace technology and modern banking solutions, our focus remains on being accessible, inclusive, and personally connected to the communities we serve," he stated.

The MD & CEO highlighted that the last five years have marked a phase of steady and purposeful growth for the bank, supported by a stronger financial foundation and expanded branch network. He noted that the bank's progress has been driven by customer trust, which remains its greatest strength.

Comprehensive Banking Services

The new Tondiarpet branch offers a full range of banking services designed to meet diverse customer needs. The branch combines digital banking convenience with personalized, face-to-face service to support local businesses, entrepreneurs, and families.

Current Financial Performance

As of December 31, 2025, Karur Vysya Bank demonstrates strong financial metrics with a network of 900 branches and over 2,226 ATMs and cash recyclers across the country.

The inauguration of the 900th branch reinforces Karur Vysya Bank's long-term commitment to Chennai and Tamil Nadu, demonstrating its belief that meaningful growth comes from staying close to customers while evolving with changing times.