Kotak Mahindra Bank Limited (KMBL) on Friday (October 18) through an exchange filing announced that it has entered into an agreement to acquire Standard Chartered Bank India’s Personal Loan book, the company announced through an exchange filing.
The deal, which is valued at around Rs 4,100 crore (approximately USD 490 million), is expected to strengthen Kotak Mahindra's presence in the retail credit market.
As per the regulatory filing, Kotak Mahindra Bank said, "The Proposed Transaction consists of loans classified as “Standard Loans” as per the 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 and KMBL will acquire the loan book, which will be outstanding closer to the completion date."
This acquisition is part of Kotak Mahindra move to scale up its its operations and focus on customer-centric growth.
Furthermore, the bank in the BSE filing added that it has been focusing on expanding its retail lending business, particularly in the affluent customer segment, and this acquisition supports that goal.
Ambuj Chandna, Head-Products, Consumer Bank, Kotak Mahindra Bank, said, “India’s unsecured lending market offers significant growth potential for Kotak, especially in the higher-end segment. Our strong risk management, customer-centric products, and technology-driven approach position us for sustainable growth. 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."
Kotak Mahindra Bank shares performance
The shares of Kotak Mahindra Bank on Friday ended the day at Rs 1,871.85 apiece, up by 0.42 per cent.
