Kotak Bank gets RBI nod to acquire of micro-finance lender Sonata Finance

The Reserve Bank on India on Friday gave its approval to Kotak Mahindra Bank to acquired micro-finance lender Sonata Finance for its Rs 537 crore.

Kotak Mahindra Bank had on February 10 this year announced its intent to acquire 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," Kotak Mahindra Bank said in an exchange filing.

The RBI has allowed Kotak to make Sonata as its business correspondent subsidiary and the entity will now be a wholly-owned subsidiary of Kotak Mahindra Bank, it added.

In February, Kotak had said that Sonata had Rs 1,903 crore of assets under management and serviced 9 lakh people as of December 2022.

The acquisition will help the lender deepen presence in the rural and semi-urban pockets in north India, it had said.