Kotak Mahindra Bank Limited will acquire the personal loan portfolio of Standard Chartered Bank India. In an exchange filing on Friday, Kotak Mahindra Bank reported that the total outstanding loan amount was approximately $4,100 crore as on September 30, 2024.
“We wish to inform you that Kotak Mahindra Bank Limited (“Bank”) has today, i.e., October 18, 2024, entered into a definitive agreement with Standard Chartered Bank, India for the acquisition of its personal loan portfolio,” Kotak said. Mahindra Bank.
The acquisition consists of loans classified as “Standard Loans” as per the guidelines of the Reserve Bank of India (RBI).
The Bank will purchase the personal loan portfolio, which will be pending payment when the end date approaches. However, Kotak Mahindra Bank stated that this transaction is not a related party transaction and the promoter, promoter group or promoter companies have no interest in it.
The acquisition will be completed in more than three months. It is subject to regulatory and related approvals and the satisfaction or waiver of customary closing conditions.
Kotak Mahindra Bank to strengthen affluent customer segment
Kotak Mahindra Bank aims to strengthen its affluent customer segment and focus on the retail lending space.
“This transaction supports our retail asset growth strategy and reinforces our commitment to retail lending. It provides access to a high-quality customer base and with Kotak Group’s successful integration track record, we are committed to a seamless transition,” said Ambuj Chandna, Head of Products, Consumer Banking, Kotak Mahindra Bank.
“Our decision to divest the personal loan portfolio is in line with the Bank’s objective of accelerating growth in the rich, affluent and SME segment. India remains a key market for the Standard Chartered network, with Retail and Wealth Banking (WRB) and Corporate and Investment Banking (CIB) as cornerstones, and we will continue to invest and grow in India,” said Aditya Mandloi, Head of wealth and retail banking, Standard Chartered Bank, India and South Asia.
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