Kotak Mahindra Bank to Acquire Personal Loan Book of Standard Chartered India for ₹4,100 Crore
In a strategic move to strengthen its presence in the retail loan sector, Kotak Mahindra Bank has announced that it will acquire the personal loan book of Standard Chartered Bank in India. As per an exchange filing made by Kotak Mahindra Bank, the value of this acquisition stands at ₹4,100 crore, as of September 30, 2024.
This acquisition includes Standard Chartered Bank’s standard loans and is in accordance with Reserve Bank of India (RBI) guidelines. Kotak Mahindra Bank aims to complete the transaction within the next three months, subject to necessary regulatory approvals.
A Strategic Growth Initiative by Kotak Mahindra Bank
Kotak Mahindra Bank has stated that this acquisition is aligned with its strategy to enhance customer-centric growth and transform its operations on a large scale. The personal loan portfolio of Standard Chartered Bank, known for its high-quality assets, will enable Kotak Mahindra Bank to strengthen its foothold among affluent customers in India and further solidify its leadership in the retail lending space.
Ambuj Chandna, Head of Products at Kotak Mahindra Bank, emphasized that India’s unsecured loan market holds immense growth potential, especially in higher segments. He pointed out that Kotak’s strong risk management practices and technology-driven approach position the bank for sustained growth in this space.
Ensuring a Smooth Transition for Customers
Kotak Mahindra Bank has assured that existing personal loan customers of Standard Chartered Bank will experience a seamless transition. The bank plans to leverage its technological expertise and customer service excellence to ensure the transition process is smooth and efficient.
Kotak’s Recent Moves in the Market
This acquisition marks the first significant transaction under the leadership of Ashok Vaswani, who took over as Managing Director and CEO of Kotak Mahindra Bank on January 1. Previously, Kotak Mahindra Bank had explored the acquisition of Citibank’s Indian consumer business, including its credit card division, but Axis Bank eventually acquired that portfolio.
