Kotak Mahindra Bank Acquires Standard Chartered India’s Personal Loan Portfolio for Rs 3,330 Crore
Kotak Mahindra Bank announced on January 23, 2025, that it has successfully acquired the personal loan portfolio of Standard Chartered Bank India for Rs 3,330 crore. This acquisition was completed after receiving the necessary regulatory approvals and fulfilling the required conditions.
In a filing with the stock exchange, Kotak Mahindra Bank confirmed that the acquisition had been finalized, following earlier communications on October 18 and November 27, 2024, regarding the proposed deal.
Kotak Mahindra Bank had previously expressed its intent to align this acquisition with its growth strategy, focusing on expanding its market share and tapping into the ‘Salaried Affluent’ segment. The bank sees this move as a key step in its Retail Assets growth strategy and is confident that it will help strengthen its position in retail lending.
Ambuj Chandna, Head of Products for Kotak Mahindra Bank’s Consumer Bank, said, “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.”
Standard Chartered Bank, on the other hand, assured customers of a seamless transition and stated that it would now focus on its wealth and investment banking business in India. Aditya Mandloi, Head of Wealth & Retail Banking at Standard Chartered Bank, India & South Asia, explained, “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 segments. India remains a key market for Standard Chartered, and we will continue to invest and grow in the country.”
India’s personal loan market has become increasingly competitive due to rising consumer demand. In 2023, the Reserve Bank of India had asked banks to set aside more capital for personal loans, as concerns over the risk of default grew.
