Kotak Mahindra Bank completes acquisition of Standard Chartered India's personal loan division for ₹3,330 crore
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Synopsis
Kotak Mahindra Bank has successfully completed the acquisition of Standard Chartered India's personal loan portfolio for ₹3,330 crore, enhancing its position in the retail credit market and targeting affluent customers.
Key Takeaways
- Kotak Mahindra Bank acquires Standard Chartered's personal loan portfolio.
- Deal valued at ₹3,330 crore.
- Acquisition strengthens retail lending position.
- First major acquisition under CEO Ashok Vaswani.
- Bank aims to expand in the 'Salaried Affluent' segment.
Mumbai, Jan 23 (NationPress) Kotak Mahindra Bank announced on Thursday the finalization of its acquisition of the personal loan portfolio from Standard Chartered India for ₹3,330 crore.
This deal, which has secured all required regulatory approvals, is expected to fortify Kotak's standing in the retail credit sector, as stated in their exchange announcement.
The bank emphasized that this premium loan portfolio will boost its engagement with the affluent customer base and further enhance its dominance in retail lending.
As mentioned in the exchange filing, 'we refer to our notifications dated October 18, 2024, and November 27, 2024, concerning the planned acquisition of the Personal Loan book from Standard Chartered Bank, India, as previously detailed.'
'We would like to notify that, having acquired the necessary regulatory approvals and met the relevant conditions precedent, the Bank has successfully completed this acquisition today, January 23, 2025,' the bank further added.
This marks the first significant acquisition under the leadership of Ashok Vaswani, who assumed the role of Managing Director and CEO of Kotak Mahindra Bank on January 1 of this year.
Kotak Mahindra Bank aims to align this acquisition with its strategy to foster growth, increase market share, and capture opportunities within the 'Salaried Affluent' segment.
Previously, during Uday Kotak's tenure, the bank had considered acquiring Citibank India’s consumer business, which included its credit card portfolio, but Axis Bank ultimately secured that deal.
In the quarter ending December 2024, Kotak Mahindra Bank reported a 16% year-on-year growth in advances, totaling ₹4.33 lakh crore.
The proportion of unsecured retail advances, including microcredit, decreased to 10.5% of net advances, down from 11.3% in the preceding quarter.
