Kotak Mahindra Bank Seals Deal to Acquire ₹4,100 Crore Personal Loan Book from Standard Chartered India

Mumbai: Kotak Mahindra Bank is set to acquire Standard Chartered Bank India’s personal loan portfolio. In a statement on October 18, 2024, Kotak Mahindra Bank confirmed it has signed a deal to purchase loans worth ₹4,100 crore as of September 30, 2024.

Deal Details

Kotak Mahindra Bank announced the acquisition of Standard Chartered’s personal loans, which are classified as “Standard Loans” under Reserve Bank of India (RBI) guidelines. The final amount will be based on the outstanding loan balance closer to the completion date. Kotak also clarified that this deal is not connected to any of the bank’s promoters, and there is no involvement from promoter-related entities.

The transaction is expected to be completed within three months, pending regulatory approvals and other conditions being met.

Kotak Mahindra Bank’s Retail Focus

Kotak Mahindra Bank is looking to grow its presence in the retail lending space and strengthen its relationship with affluent customers. Ambuj Chandna, Head of Consumer Bank at Kotak, stated, “This deal helps us grow in the retail lending sector and gives us access to high-quality customers. With our track record of smooth integrations, we’re ready for a seamless transition.”

Standard Chartered’s Strategy

For Standard Chartered Bank, this sale aligns with its focus on expanding in other areas like wealth management and SME lending. Aditya Mandloi, Head of Wealth & Retail Banking for Standard Chartered India, explained that the move is part of the bank’s strategy to concentrate on growth in these segments.