Kotak Mahindra Bank to acquire Sonata Finance for Rs 537 crore

Private sector lender Kotak Mahindra Bank on Friday said it will acquire 100 per cent equity shares of Sonata Finance Pvt Ltd, a non-banking financial company-microfinance institution (NBFC-MFI), from its existing shareholders for Rs 537 crore.

The acquisition will be subject to regulatory approvals, including by the Reserve Bank of India (RBI).

Post-acquisition, Sonata Finance will be a wholly owned subsidiary of the bank. This acquisition will enable the bank to scale up its operations in the rural and semi-urban markets in the northern states of India

It will make the bank a significant player in financial inclusion, catering to economically weaker and