Kotak Mahindra Bank (KMB) said it had entered into an agreement to acquire the personal loan book of Standard Chartered Bank, India to strengthen its position further in the retail credit market.
The proposed transaction, as of September 30, 2024, includes a total outstanding loan amount of about ₹4,100 crore comprising loans classified as ‘standard loans’ as per Reserve Bank of India (RBI) guidelines.
“The transaction is expected to be completed over the next three months, subject to regulatory and other approvals and the satisfaction or waiver of customary closing conditions. KMB will acquire the loan book, which will be outstanding closer to the completion date,” the bank said in a statement.
“The high-quality loan book from Standard Chartered Bank allows KMB to build on its strength in the affluent customer segment and further reinforces its leadership in the retail lending space,” it said.
“This transaction supports our retail assets growth strategy and reinforces our commitment to retail lending,” said Ambuj Chandna, Head-Products, Consumer Bank, Kotak Mahindra Bank. “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,” he added.
Aditya Mandloi, Head – Wealth & Retail Banking, Standard Chartered Bank, India & South Asia said, “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.”
Published – October 18, 2024 08:04 pm IST
