Kotak Mahindra bank picks up 100% stake in Sonata Finance for Rs 537 crore

13 Feb 2023 , 09:26 AM

Kotak Mahindra Bank announced on Friday that it has acquired Sonata Finance for Rs537 crore in an all-cash transaction. Sonata Finance will become a wholly owned subsidiary of the bank once regulatory and other approvals are obtained, according to the company.

Sonata Finance, according to Kotak, will provide a solid foundation for the bank to become a significant player in the financial inclusion segment, catering to economically disadvantaged and underserved households in a commercially viable manner.

The lender stated in its media release that it has entered into a binding share purchase agreement to acquire 100% of equity share in Sonata Finance.

Sonata Finance, boasting assets worth Rs1,903 crore rupees under its management as of December 31, 2022, caters to 900,000 clients through a sprawling network of 502 branches spanning 10 Indian states. This acquisition by Kotak Mahindra Bank will enable them to broaden their reach in rural and semi-urban markets across Northern India.

At around 9.28 AM, Kotak Mahindra Bank was trading at Rs1,782.20 per piece, up by 0.57% against the previous close of Rs1,772.05 on NSE. 

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