RBI approves Kotak Mahindra Bank's acquisition of Sonata Finance, a microlender

23 Oct 2023 , 07:46 AM

On Friday, Kotak Mahindra Bank said that the Reserve Bank has approved its acquisition of Sonata Finance, a microlender, for Rs 537 crore. On February 10 of this year, the private sector lender with its headquarters in the city declared its intention to purchase Sonata.

‘RBI has, vide its letter dated October 19, 2023 received by the Bank on October 19, 2023, conveyed its approval to the Bank, for acquiring 100 per cent of the issued and paid up capital in Sonata,’ according to a regulatory filing submitted by Kotak Mahindra Bank

Sonata will now be a fully-owned subsidiary of Kotak Mahindra Bank after the RBI approved Kotak’s creation of the company as its business correspondent subsidiary, the statement continued.

As of December 2022, Sonata had 9 lakh customers and Rs 1,903 crore in assets under management, according to a February statement from Kotak.

The lender had stated that the acquisition will enable it to strengthen its position in rural and semi-urban areas of north India.

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