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Kotak Mahindra Group acquires vehicle financing portfolio of Volkswagen Finance

With this acquisition, Kotak will gain access to over 30,000 high-quality customers with a total loan outstanding with VWFPL of around Rs 1,340 crore, the release said.

September 16, 2021 / 05:43 PM IST

Kotak Mahindra Group and Volkswagen Finance Private Limited on September 16 announced that Kotak has acquired the vehicle financing loan portfolio of VWFPL, the Indian captive financing arm of Volkswagen Group.


Kotak Mahindra Prime Limited (Kotak Prime) will acquire the passenger cars and two-wheelers portfolio, and Kotak Mahindra Bank Limited (KMBL) will acquire the commercial vehicles portfolio of VWFPL, a press release said.


With this acquisition, Kotak will gain access to over 30,000 high-quality customers with a total loan outstanding with VWFPL of around Rs 1,340 crore, the release said.


All these acquired loans are classified as “Standard Loans” as per the current Reserve Bank of India (RBI) guidelines. In addition to the “Standard Loans”, Kotak has also acquired the Non-Performing Assets portfolio of VWFPL, the release said.


"The strategic intent behind this acquisition is to further strengthen Kotak’s vehicle financing loan portfolio and expand our market share,” said D Kannan, Group President – Commercial Banking, Kotak Mahindra Bank and Director of Kotak Mahindra Prime.

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“VWFPL has been operating in the country since 2009 and during this time has built a strong customer portfolio. The long-term growth prospects of the Indian vehicle market are very attractive and this acquisition reinforces Kotak’s standing as one of the leading vehicle financing players,” said Kannan.

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Tags: #Kotak
first published: Sep 16, 2021 05:38 pm
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