Kotak Mahindra Bank To Buy StanChart’s Rs4,100 Crore Personal Loan Book
Moneylife Digital Team 18 October 2024
Kotak Mahindra Bank Ltd (KMBL) has signed an agreement to acquire the personal loan book of Standard Chartered Bank, India (StanChart). The proposed transaction comprises a total loan outstanding of around Rs4,100 crore or about US$490mn (million) as of 30 September 2024. The proposed transaction consists of loans classified as standard loans as per the Reserve Bank of India (RBI) guidelines.
 
Aditya Mandloi, head for wealth and retail banking of StanChart for India and South Asia, says,  "Our decision to divest the personal loan book is in line with the StanChart's focus to accelerate growth in the wealth, affluent and small and medium enterprise (SME) segment.
 
“This transaction supports our retail assets growth strategy and reinforces our commitment to retail lending” says Ambuj Chandna, head for products in consumer banking at Kotak Mahindra Bank. “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.”
 
In a release, Kotak Mahindra Bank says the transaction is expected to be completed over the next three months, subject to regulatory and other approvals and the satisfaction or waiver of customary closing conditions and it will acquire the loan book which will be outstanding closer to the completion date.
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