Correct Answer : Option (D) - Kotak Mahindra Bank
Kotak Mahindra Bank has successfully acquired Sonata Finance Private Limited (Sonata) for a total consideration of approximately Rs. 537 crore. This acquisition grants Kotak Mahindra Bank full ownership of Sonata, bolstering its presence in the microfinance sector.
Sonata Finance: A Microfinance Powerhouse :
* Sonata Finance is a Non-Banking Finance Company – Micro Finance Institution (NBFC-MFI) registered with the Reserve Bank of India (RBI).
* As of December 31, 2023, Sonata boasted an impressive Asset Under Management (AUM) of approximately Rs. 2,620 crore.
* Sonata operates across 10 states through a network of 549 branches, providing microfinance services to underserved communities.
Kotak’s Microfinance Expansion Strategy :
* The acquisition of Sonata was previously announced by Kotak Mahindra Bank in February 2023 and October 2023, signaling the bank’s intention to expand its microfinance operations.
* With the acquisition now finalized, Sonata’s extensive microfinance network becomes part of the Kotak Mahindra Bank umbrella, strengthening the bank’s presence in the microfinance sector.