Kotak Mahindra buys BSS Microfinance for Rs 139 crore

Narayan SA, president (Commercial Banking, Kotak Mahindra Bank, said, “The capabilities and processes required for this customer segment are unique, and cannot be created easily or organically in a short span. BSS is of the right size, culturally compatible with Kotak, and has proven its processes and value systems over a decade.” BSS, which lends only to women under the joint lending group model, has an average loan size of Rs 22,000 and all the loans qualify under priority sector lending guidelines, which would be of a help to the private bank.

Ramesh Bellamkonda, chairman & MD, BSS Microfinance, said, “We will now be able to expand, and provide better products and services ..I am excited about the prospect that we can now play a more meaningful role to alleviate poverty …much better than we have done so far.”