Kotak Mahindra Bank on January 23 said it has acquired personal loan book of Standard Chartered India for Rs 3,330 crore.
"We refer to our intimations dated October 18, 2024 and November 27, 2024 in relation to the proposed acquisition by the Bank of the Personal Loan book of Standard Chartered Bank, India, as stated therein. In this regard, we now wish to inform you that, after having received the necessary regulatory approvals and upon fulfillment of the relevant conditions precedent, the Bank has, today, i.e., on January 23, 2025, completed the aforesaid acquisition," said Kotak Mahindra Bank in a stock exchange filing.
Last year, Kotak Mahindra Bank said it is hoping to align the acquisition to its strategy to drive growth, expand market share and unlock opportunities in the 'Salaried Affluent' segment.
"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," Ambuj Chandna, Head-Products, Consumer Bank, Kotak Mahindra Bank had said.
Standard Chartered Bank had assured a smooth transition for the customers, and will be focusing on the wealth and investment banking business in India, going forward.
"Our decision to divest the personal loan book is in line with the Bank’s focus to accelerate growth in the wealth, affluent and SME segment. India continues to be a key market for Standard Chartered network, with Wealth & Retail Banking (WRB) and Corporate & Investment banking (CIB) as the cornerstones and we will continue to invest and grow in India," Aditya Mandloi, Head – Wealth & Retail Banking, Standard Chartered Bank, India & South Asia had said.
India's personal loan market has increasingly become competitive as consumer demand has grown. In 2023, Reserve Bank of India asked banks to set aside more capital for personal credit, as concerns emerged over the risk of default.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
