Kotak Bank open to acquisitions if value accretive, says Ekambaram

Shanti Ekambaram says any fintech which is into the data science and analytics space will work with banks that have large consumer bases.

Kotak Mahindra Bank, India’s third-largest private bank, is open to acquisitions if they are value-accretive businesses, said Shanti Ekambaram, whole time director at the lender.

The acquisitions of BSS Microfinance and Sonata Finance have been extremely value-accretive, Ekambaram said in an exclusive interview with Moneycontrol.

“BSS was our way of entering, learning and scaling the microfinance business and Sonata was an extension of that and both acquisitions came at great value. So anything that is value-accretive, Kotak Bank will be interested in,” Ekambaram said. The bank is open to options if a mid-sized lender is value-accretive, said Ekambaram, who has been with the bank for over 20 years.

Kotak Mahindra acquired BSS Microfinance in an all-cash deal for Rs 139 crore in September 2016. The Reserve Bank of India approved that deal a year later. The bank said the acquisition would serve its long-term need to widen financial inclusion and cater to the weaker sections.

Also read: Kotak Bank plans to boost unsecured retail portfolio to mid-teens, says Shanti Ekambaram

#KotakMahindraBank is open to acquisitions if the institution presents value-accretive business, said Shanti Ekambaram, President, Consumer Banking, Kotak Mahindra Bank.https://t.co/PieZvHjDVD@Dinesh_Unni @EkambaramShanti @KotakBankLtd #Banking #Banks #UdayKotak pic.twitter.com/LSKD61ZpsA

— Moneycontrol (@moneycontrolcom) September 11, 2023

Kotak Mahindra Bank’s standalone net profit climbed 28 percent to Rs 10,939 crore in FY23.

The stock of the Kotak bank was trading at 1809.00 a piece, up 0.88 percent at the time of publishing the story.