Kotak Mahindra Bank to Acquire StanC's INR 4100 Crore Personal Loan Portfolio

Kotak Mahindra Bank is set to acquire Standard Chartered Bank India’s personal loan book, valued at ₹4,100 crore. This acquisition is expected to be completed within three months, subject to regulatory approvals and customary closing conditions. The loans being acquired are classified as standard, ensuring a smooth transition for both banks and their customers.

Driving Growth and Expanding Market Share

This acquisition aligns with Kotak Mahindra Bank’s strategic vision of scaling its operations, driving growth, and expanding its market share, especially in the affluent salaried customer segment. By integrating StanC's loan portfolio, Kotak aims to unlock new opportunities in the higher-end, unsecured lending market, which offers significant growth potential.

Reinforcing Retail Lending Strategy

Kotak sees this acquisition as a vital step in bolstering its retail assets growth strategy. The addition of a high-quality customer base through this transaction will support the bank's continued expansion in the unsecured lending sector, which includes personal loans and consumer durable loans. The bank’s commitment to a seamless transition is backed by its successful track record of integrating acquired businesses.

Strategic Acquisition to Fuel Growth in Affluent Customer Segment

As of June 2024, Kotak Mahindra Bank’s personal loan and consumer durable loan book stood at ₹20,317 crore, with a total loan book of ₹4.05 lakh crore. Unsecured retail advances accounted for 11.6% of the bank’s total net advances. The bank is focused on accelerating its growth in the wealth, affluent, and SME segments, ensuring long-term value creation for its customers and stakeholders.

Key Facts and Figures

• Acquisition Value: ₹4,100 crore (StanC’s personal loan book)
• Transaction Timeline: 3 months
• Kotak’s Personal Loan & Consumer Durable Loan Book (June 2024): ₹20,317 crore
• Total Loan Book (June 2024): ₹4.05 lakh crore
• Unsecured Retail Advances (June 2024): 11.6% of net advances
• Strategic Focus: Growth in affluent and SME segments