Kotak Mahindra Bank Acquires Sonata Finance for ₹537 Crore

On March 28, 2024, Kotak Mahindra Bank acquired a 100% stake in Sonata Finance Private Limited for a total consideration of around ₹537 crore.

Details of the Acquisition

On Thursday, the Indian bank and financial services company Kotak Mahindra Bank informed in the stock exchange filing that they had acquired Sonata Finance Private Limited, which is a Non-Banking Finance Company (NBFC) – Micro Finance Institution registered with the Reserve Bank of India (RBI). The total consideration of the acquisition was approximately ₹537 crore.

The company stated, “We refer to our intimations dated February 10, 2023, and October 20, 2023, and wish to update you that the Bank has, today, acquired 100% of the issued and paid-up capital of Sonata Finance Private Limited (“Sonata”), a Non-Banking Finance Company – Micro Finance Institution registered with the RBI for a total consideration of approximately Rs. 537 crore.”

They further added that Sonata Finance Private Limited is operating in 10 states through 549 branches in India. As of December 31, 2023, the company has an Asset Under Management (AUM) of approximately ₹2,620 crore. With this acquisition, Sonata Finance Private Limited has become a wholly-owned subsidiary of Kotak Mahindra Bank.

On March 28, 2024, the Kotak Mahindra Bank share price opened at ₹1,777.95, touching the day’s high at ₹1,802.50, as of 2:22 PM on the NSE.

About Kotak Mahindra Bank

Kotak Mahindra Bank is a diversified financial services group that offers a comprehensive range of banking and financial services, which includes retail banking, corporate banking, treasury, investment banking, vehicle finance, stock broking, asset management, advisory services, general insurance and life insurance.

In the quarter ended December 2023, the company reported a total income of ₹14,096.04 crore, which is ~27% higher than ₹11,098.59 crore in the quarter ended December 2022. The net profit for the quarter ended December 2023 was ₹3,005.01, ~7% higher than ₹2,791.88 in the quarter-ended December 2022.

About Sonata Finance Private Limited

Sonata Finance Private Limited is a Microfinance company registered as NBFC-MFI. The company offers loans to joint liability groups as well as individuals for a range of income-generating activities. Additionally, Sonata Finance also offers a wide range of products, such as housing loans, two-wheeler loans, MSME loans, etc., to meet the financial requirements of its customers.

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