Kotak Mahindra Bank announced that its wholly-owned subsidiaries, Sonata Finance Private Ltd and BSS Microfinance Ltd, have approved a scheme of amalgamation at their respective board meetings. The merger will see Sonata combine with BSS Microfinance on a going concern basis, pending approval from the shareholders and creditors of both companies, as well as the National Company Law Tribunal (NCLT) and other regulatory authorities. As of March 31, 2024, the combined net worth of Sonata and BSS is less than 2% of Kotak Mahindra Bank's overall net worth. The transaction is based on an arm's length price determined by an independent valuation report. Under the scheme, BSS will issue 1,931 shares of face value ?10 each for every 10,000 shares of face value ?10 held by shareholders of Sonata. Importantly, Kotak Mahindra Bank itself is not a party to this scheme, and there will be no change in its shareholding pattern as a result of the amalgamation. Both subsidiaries operate as business correspondents for the bank, providing microfinance and small loans to women borrowers and individuals. As of March 31, 2024, Sonata's net worth was Rs3.89 billion, while BSS's net worth stood at Rs.10.10 billion. Kotak Mahindra Bank previously announced the acquisition of Sonata Finance in February 2023.