Kotak Mahindra Bank Limited Acquires BSS Microfinance Private Limited
Mumbai, September 30, 2016: Kotak Mahindra Bank Limited (Kotak), today announced that it has executed binding share purchase agreement to acquire 99.49% of equity shares of BSS Microfinance Private Limited (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 has been approved by the Board of Directors of Kotak Mahindra Bank and is for an aggregate all-cash consideration of Rs. 139.2 crore. 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. Strategic rationale and benefits BSS has a commercially established model in the microfinance segment. This acquisition gives Kotak access to BSS’s growing customer base which currently stands at over 2,17,000 and network of 78 branches (as of June 30, 2016)