Kotak Mahindra Bank to Acquire Standard Chartered’s Rs 4,100 Crore Personal Loan Portfolio in India
Kotak Mahindra Bank will acquire Standard Chartered Bank's Rs 4,100 crore personal loan portfolio in India, strengthening its position in the affluent customer segment. The transaction supports Kotak’s retail lending growth strategy.
Kotak Mahindra Bank to Acquire Standard Chartered’s Rs 4,100 Crore Personal Loan Portfolio in India
Kotak Mahindra Bank announced its acquisition of Standard Chartered Bank’s Rs 4,100 crore personal loan business in India. The move will bolster Kotak’s presence in the affluent customer segment, further strengthening its retail lending capabilities. The acquisition comes as the first major deal under the leadership of Ashok Vaswani, Kotak Mahindra Bank’s new Managing Director and CEO, who took over in January 2024.
This acquisition is seen as a strategic step to recover customer acquisition momentum, particularly after the Reserve Bank of India (RBI) barred Kotak from onboarding new customers through digital channels and issuing fresh credit cards in April 2024. The transaction allows Kotak to further enhance its market share in the affluent lending space, aligning with its retail assets growth strategy.
As of June 2024, Kotak’s personal loans, consumer durable loans, and business loans totaled Rs 20,317 crore, with credit card loans amounting to Rs 14,644 crore. Standard Chartered Bank’s decision to divest its personal loan portfolio is aligned with its focus on expanding its wealth, affluent, and SME customer segments.
The transaction is expected to conclude within the next three months, subject to regulatory approvals.
Click Here to Visit