2024/03/29 17:39 pm
Kotak Mahindra Bank has acquired NBFC Sonata Finance Pvt Ltd for INR 537 crore. Sonata is operating in 10 states through 549 branches and has an Asset Under Management (AUM) of approximately INR 2,620 crore as of December 31, 2023.
"The Bank has, today, acquired 100% of the issued and paid-up capital of Sonata Finance Private Limited, a Non-Banking Finance Company (NBFC), a microfinance institution registered with the RBI for a total consideration of approximately INR 537 crore," Kotak Bank said in a regulatory filing.
The non-banking finance company and microfinance institution is registered with the RBI.
Sonata operates in 10 states across the country and has 549 branches. Its assets under management are pegged at around INR 2,620 crore as of December 31, 2023, Kotak Mahindra Bank said in a stock exchange filing.
With this acquisition, Lucknow-based microlender Sonata has become a wholly-owned subsidiary of Kotak Bank.
On October 20, 2023, RBI approved Kotak Mahindra’s acquisition of Sonata Finance and made it a business correspondent subsidiary.
In November 2023, the private lender announced the sale of a 51% stake in Kotak Mahindra General Insurance to Zurich Insurance for INR 4,051 crore through a combination of fresh capital infusion and share purchase. This was supposed to be followed by a 19% stake sale within three years.
Earlier in February 2024, Kotak Mahindra Bank decided to give up its majority stake in the general insurance business. The private sector lender Kotak Mahindra Bank announced that Zurich Insurance will acquire a 70% stake in the bank’s general insurance arm, Kotak Mahindra General Insurance, for INR 5,560 crore, in a single tranche.
Kotak Mahindra Bank shares were trading in the green for the second day on March 28, up 0.93% at INR 1,792.15 apiece at 12.55 PM. The stock has gained for six out of the last seven trade sessions. It has gained 6.47% in the past month.
Kotak Mahindra Bank Limited is an Indian banking and financial services company headquartered in Mumbai. It offers banking products and financial services for corporate and retail customers in the areas of personal finance, investment banking, life insurance, and wealth management. It is India's third largest private sector bank by market capitalisation after HDFC Bank and ICICI Bank.