Kotak Mahindra Bank buys BSS Microfinance

Kotak Mahindra Bank (KMB) has decided to acquire 99.49% of BSS Microfinance (BSS) 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. 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), the Mumbai-based bank said.
●    This acquisition offers Kotak a deeper reach in the low income segment.
●    Kotak Mahindra Bank is an Indian private sector banking headquartered in Mumbai, Maharashtra, India. In February 2003, Reserve Bank of India gave the licence to Kotak Mahindra Finance Ltd., the group's flagship company, to carry on banking business.
●    It offers a wide range of banking products and financial services for corporate and retail customers through a variety of delivery channels and specialized subsidiaries in the areas of personal finance, investment banking, life insurance, and wealth management.