Private lender Kotak Mahindra Bank on Friday said it has acquired micro-finance company Sonata Finance for ₹537 crore in an all-cash deal. Sonata Finance will be a wholly owned subsidiary of the bank after receiving regulatory and other approvals, it said.
“Bank has executed a binding share purchase agreement to acquire 100% of equity shares of Sonata Finance Private Limited,” the lender said in a press release.
Kotak said Sonata Finance will provide a strong platform to enable the bank to become a significant player in the financial inclusion segment, catering to economically weaker and underserved households in a commercially viable manner.
As of December 31, 2022, Sonata Finance had an asset under management of Rs 1,903 crore, servicing a customer base of 900,000 through a network of 502 branches across 10 states. The transaction provides the bank with the opportunity to scale up its operations in the rural and semi-urban markets in the northern states of India.