Kotak Mahindra Receives RBI Approval To Acquire Sonata Finance For Rs 537 Cr
We want to inform you that the RBI has given the bank approval to purchase 100 per cent of the issued and paid-up capital in Sonata, as mentioned above and to transform Sonata into a business correspondent subsidiary of the bank, according to a letter the RBI sent to the bank on October 19, 2023 and received by the bank on that same date, the bank stated
On Friday, Kotak Mahindra Bank stated that the Reserve Bank has approved its Rs 537 crore acquisition of Sonata Finance. On 10 February of this year, the private sector lender with its headquarters in Mumbai declared its intention to purchase Sonata.
Kotak Mahindra Bank in its BSE filing on Friday stated that, “We want to inform you that the RBI has given the bank approval to purchase 100 per cent of the issued and paid-up capital in Sonata, as mentioned above and to transform Sonata into a business correspondent subsidiary of the bank, according to a letter the RBI sent to the bank on October 19, 2023 and received by the bank on that same date.”
The approval came before Kotak Mahindra released its September quarter results. On 21 October, the bank is expected to release its Q2 earnings.
Previously, in September 2016, Kotak Mahindra paid Rs139 crore for BSS Microfinance in an all-cash transaction. The corporation was able to establish a grip in the south thanks to the acquisition.