In This Article:
Kotak Mahindra Bank (KMB) has completed the acquisition of a personal loan portfolio from Standard Chartered Bank.
The size of the portfolio stands at Rs33.3bn ($385m), which is lower than the initially indicated Rs41bn at the time of the deal announcement in October 2024.
This discrepancy is due to repayments made by customers in the interim period.
The personal loans are categorised under unsecured retail advances, which constituted a 10.5% share of KMB's net advances as of the end of December 2024.
KMB’s head products, consumer bank Ambuj Chandna emphasised the bank's cautious approach in this segment and its intentions to systematically expand the personal loan book.
"The pool acquisition gives access to the target profile," Chandna stated, addressing the strategic value of the transaction, reported Business Standard.
The acquisition was finalised on 23 January 2025, following the receipt of regulatory approvals as well as the satisfaction of relevant conditions precedent, as disclosed in a filing with the Bombay Stock Exchange (BSE).
While KMB's core strategy focuses on organic growth, Chandna mentioned that inorganic opportunities are considered based on risk-adjusted returns.
Earlier this year, HDFC Bank Group received approval to raise stake in three banks, namely KMB, AU Small Finance Bank, and Capital Small Finance Bank.
The approval from the Reserve Bank of India is valid until 2 January 2026.
"Kotak Mahindra acquires personal loan portfolio from Standard Chartered" was originally created and published by Retail Banker International, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.