Kotak Mahindra bank said on Friday that it will acquire 99.49% stake of BSS Microfinance Pvt Ltd. This acquisition will be for Rs 139.2 crores i.e., 2,65,91,856 equity shares of Rs 10 each . The execution of this share purchase agreement will give Kotak access to BSS Microfinance’s growing customer base which currently stands at over 2,17,000 with a network of 78 branches.
BSS Microfinance Pvt Ltd has been currently classified as an NBFC-MFI with net worth of Rs 72.9 crores and a loan book of Rs.483 crores. Kotal Mahindra Bank plans to complete this all cash deal within 3-4 months subject to regulatory and other clearances including the ones from the Reserve Bank of India.
This acquisition will enable the customer base of BSS Microfinance to easily access products and services offered by Kotak, while also enabling the latter to have a deeper reach in the low-income segment. The combined experience of the bank and the NBFC will be leveraged to scale greater heights in the existing platform through this acquisition.
President of commercial banking at Kotak Mahindra Bank, Narayan SA said that over a decade BSS has proved its processes and value systems. It is of the right size and also culturally compatible with Kotak, thus making it a perfect fit to fulfill the commitment of catering to the needs of the weaker sections of society.