Kotak Bank has announced the successful completion of a strategic merger between its wholly-owned subsidiaries, marking a significant corporate restructuring in the microfinance sector. The bank disclosed that Sonata Finance Private Limited has been amalgamated with BSS Microfinance Limited, effective October 11, 2025.

Key Details of the Merger

Merger Process and Approvals

The amalgamation process, which began with an announcement on August 12, 2024, has now reached its conclusion. The merger required and received multiple layers of approval:

1. Shareholders of both Sonata Finance and BSS Microfinance
2. Creditors of the involved entities
3. National Company Law Tribunal (NCLT)

Implications and Outlook

This merger is part of Kotak Mahindra Bank's strategy to streamline its microfinance operations. By consolidating its microfinance subsidiaries, the bank is likely aiming to achieve operational synergies and enhance its presence in the microfinance sector.

The amalgamation could potentially lead to:

• Improved operational efficiency
• Consolidated market presence in the microfinance segment
• Streamlined regulatory compliance

Regulatory Compliance

In compliance with the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015, Kotak Mahindra Bank has duly informed the stock exchanges about this development. The bank has also made this information available on its official website, ensuring transparency for all stakeholders.

As the microfinance sector continues to play a crucial role in financial inclusion, this merger may be seen as a strategic move by Kotak Mahindra Bank to strengthen its position in this important market segment.

Kotak Bank , one of India's leading private sector banks, has reported impressive growth in both deposits and advances for the quarter ending September 30. The bank's performance underscores its strong position in the Indian banking sector and its ability to attract both depositors and borrowers.

Key Highlights

Deposit Growth

Kotak Mahindra Bank's total deposits reached ₹5,28,776 crore as of September 30, marking a substantial year-on-year growth of 14.6%. This growth demonstrates the bank's strong ability to attract and retain customer deposits, reflecting positively on its brand reputation and customer trust.

The Current Account Savings Account (CASA) deposits, a crucial indicator of a bank's low-cost funding base, stood at ₹2,23,791 crore, showing a healthy increase of 11.2% compared to the same period last year. This growth in CASA deposits is particularly noteworthy as it helps the bank maintain a lower cost of funds, potentially leading to improved profitability.

Advances Growth

The bank's loan book also showed robust growth, with net advances reaching ₹4,62,552 crore, representing a significant year-on-year increase of 15.8%. This growth in the loan portfolio indicates strong demand for credit and the bank's ability to capitalize on market opportunities.

Quarterly Performance

Comparing the quarterly performance, Kotak Mahindra Bank demonstrated steady growth:

• Total deposits increased by 3.1% from ₹5,12,838 crore in June to ₹5,28,776 crore in September.
• Net advances grew by 4.0% quarter-on-quarter, rising from ₹4,44,823 crore to ₹4,62,552 crore.
• CASA deposits showed a notable increase of 6.7% compared to the previous quarter.

Conclusion

Kotak Mahindra Bank's strong performance in both deposits and advances reflects its robust business model and effective strategies in navigating the competitive banking landscape. The consistent growth in CASA deposits and the loan book positions the bank well for sustained profitability and market competitiveness.

As the Indian economy continues to grow, Kotak Mahindra Bank's ability to attract deposits and expand its loan portfolio suggests it is well-positioned to capitalize on the country's economic momentum and financial sector opportunities.

Note: The financial figures mentioned in this article are based on provisional data subject to limited review by the bank's statutory auditors.