Kotak Mahindra Bank Limited will acquire Standard Chartered Bank India’s personal loan book. In an exchange filing on Friday, Kotak Mahindra Bank informed that the total outstanding loan amount was around ₹4,100 crore as of September 30, 2024.
“We wish to inform you that Kotak Mahindra Bank Limited (“Bank”) has, today, i.e., on October 18, 2024, entered into a definitive agreement with Standard Chartered Bank, India for the acquisition of its Personal Loan book,” Kotak Mahindra Bank said.
The acquisition consists of loans classified as “Standard Loans” according to the Reserve Bank of India (RBI) guidelines.
The Bank will purchase the personal loan book, which will be outstanding closer to the completion date. However, Kotak Mahindra Bank stated that this transaction is not a related party transaction, and the promoter, promoter group, or promoter companies do not have any interest in it.
The acquisition will be completed in over 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 retail lending space.
“This transaction supports our Retail Assets 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 smooth transition,” said Ambuj Chandna, Head-Products, Consumer Bank, Kotak Mahindra Bank.
“Our decision to divest the personal loan book is in line with the Bank’s focus to accelerate growth in the wealth, affluent and SME segment. India continues to be a key market for Standard Chartered network, with Wealth & Retail Banking (WRB) and Corporate & Investment banking (CIB) as the cornerstones and we will continue to invest and grow in India,” said Aditya Mandloi, Head – Wealth & Retail Banking, Standard Chartered Bank, India & South Asia.
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