MUMBAI: Kotak Mahindra has received RBI’s approval to acquire Sonata Finance for Rs 537 crore, the bank said in informed the Bombay Stock Exchange on Friday.

“We now wish to update you that the RBI has, vide its letter dated October 19, 2023, conveyed its approval to the Bank, for acquiring 100 per cent of the issued and paid-up capital in Sonata and to make Sonata a Business Correspondent subsidiary of the Bank,” Kotak Mahindra Bank said in its BSE filing.

The approval has come through just ahead of Kotak Mahindra’s Q2 results to be announced on October 21.

The acquisition of Sonata Finance will help the company to expand its presence in the northern states.