Kotak Mahindra Bank to buy Rs.4100 crore Personal Loan Book of Standard Chartered Bank in India
Kotak Mahindra Bank (KMBL) has announced that it will buy the personal loan business of Standard Chartered Bank in India. This deal is worth about Rs 4,100 crore (around $490 million) and includes loans that are in good standing, as per the guidelines of the Reserve Bank of India (RBI).
The deal is expected to be completed within the next three months, once all approvals from regulators are received and other necessary conditions are met. The exact loan amount Kotak will take over will be finalized at the time of the deal’s closing.
Standard Chartered PLC is a British multinational bank with operations in consumer, corporate and investment banking, and treasury services. Despite being headquartered in the United Kingdom, it does not conduct retail banking in the UK, and around 90% of its profits come from Asia, Africa, and the Middle East.
What Does This Deal Mean?
For Kotak Mahindra Bank, this is a big step towards expanding its personal loan business. By acquiring these loans from Standard Chartered, Kotak will strengthen its presence in the market, especially among wealthier customers. Kotak sees a lot of growth potential in the personal loan market and believes this move will help them grow even more in this space.
Ambuj Chandna, who is in charge of Kotak’s products for consumers, said that India’s personal loan market has a lot of potential, especially for higher-income customers. He mentioned that Kotak’s strong risk management and customer-friendly products make them confident about growing sustainably in this segment.
For Standard Chartered Bank, this move fits with their plan to focus on other areas like wealth management, affluent customers, and small businesses. They are still committed to India and will continue to invest in the country, but they see this as an opportunity to grow in different segments. Aditya Mandloi, the head of retail banking at Standard Chartered, assured that they will work with Kotak to ensure a smooth transition for customers during this change.
What This Means for Customers:
If you’re a customer with a personal loan from Standard Chartered, the ownership of your loan may change hands to Kotak Mahindra Bank after this deal is completed. However, both banks have committed to ensuring that the transition is smooth, and there shouldn’t be any major disruptions for you as a customer.
This deal shows Kotak Mahindra Bank’s goal to grow bigger in the personal loan market, while Standard Chartered plans to focus on different areas in India.
