Kotak Mahindra Bank to Acquire Standard Chartered's Loan Portfolio

Kotak Mahindra Bank announced its acquisition of Standard Chartered Bank's Rs 4,100-crore personal loan portfolio. This strategic move aligns with Kotak's customer-centric growth focus, enhancing its retail lending position. The transaction is expected to conclude in three months, pending regulatory conditions.

Kotak Mahindra Bank is taking a strategic leap by acquiring Standard Chartered Bank's Rs 4,100-crore personal loan segment, a move disclosed on Friday. This acquisition bolsters Kotak's approach toward customer-centric growth, aimed at scaling its retail assets.

The private sector lender will absorb the full spectrum of Standard Chartered's classified 'standard advances'. Kotak Mahindra Bank's statement highlighted the 'high-quality' of the acquired loan portfolio, confident it will enhance its leadership in retail lending. The deal is set for completion in a three-month period.

This development comes as lenders face regulatory scrutiny for unsecured loans like personal loans, with increased risk weights introduced to discourage growth in these areas. Despite this, Kotak's product head for consumer banking, Ambuj Chandna, emphasized growth prospects in the affluent unsecured lending sector in India.

(With inputs from agencies.)