Kotak Mahindra Bank Seals ₹4100 Cr Deal to Acquire StanC’s Personal Loan Book, Taps Into Unsecured Lending Boom

Kotak Mahindra Bank announced its plan to acquire the personal loan book of Standard Chartered Bank in India, valued at ₹4,100 crore. The transaction is set to be completed within three months, subject to regulatory approvals and other conditions. The loans involved are classified as “Standard Loans” as per the guidelines laid out by the Reserve Bank of India (RBI).

Kotak Mahindra Bank expressed that this acquisition is part of its broader vision to scale up its retail assets and expand its market share in the affluent salaried customer segment. Ambuj Chandna, Head of Products at the Consumer Bank division of Kotak Mahindra Bank, mentioned that India’s unsecured lending market holds significant growth potential, particularly in the higher-end segment.

He added that the bank’s strong risk management framework, customer-centric products, and technology-driven approach make it well-positioned for sustainable growth. He emphasised that this acquisition will help the bank grow in retail lending, offering access to a quality customer base.

Kotak Mahindra Bank assured that the transition of Standard Chartered Bank’s personal loan customers to Kotak will be smooth and that the bank is committed to providing these new customers with a diverse range of products and services. The bank also highlighted its expertise in technology and quality customer service as key drivers in ensuring a seamless transition.

On Standard Chartered Bank’s side, Aditya Mandloi, Head of Wealth & Retail Banking for Standard Chartered Bank in India & South Asia, said that divesting the personal loan book is aligned with their strategy of focusing on the wealth, affluent, and SME segments. Despite the sale of this portfolio, Standard Chartered remains committed to growing its business in India, particularly in wealth and corporate banking, and will work closely with Kotak Mahindra Bank to ensure a smooth transition for its personal loan customers.

The acquisition reinforces Kotak Mahindra Bank’s leadership in retail lending, particularly in the affluent customer segment, and supports its long-term strategy of leveraging technology to scale its operations. Both banks stressed their commitment to making the transition smooth and ensuring the satisfaction of customers throughout the process.