Kotak Mahindra Bank Ltd.

Kotak Mahindra Bank has executed a binding share purchase agreement to acquire 99.49% of equity shares of BSS Microfinance (BSS), a Non-Banking Finance Company, classified as a NBFC-MFI, from existing shareholders subject to regulatory and other approvals, including Reserve Bank of India. The acquisition is for an aggregate all-cash consideration of Rs 139.2 crore.

The acquisition has been approved by the board of directors of the bank. This acquisition gives Kotak access to BSS’ growing customer base which currently stands at over 217,000 and network of 78 branches, as of June 30, 2016.

BSS has a commercially established model in the microfinance segment. As of June 30, 2016, BSS has a networth of approximately Rs 73 crore and microfinance loans of Rs 483 crore in its books. It will be a subsidiary of Kotak after receiving regulatory and other approvals.