The CCI (Competition Commission of India) approved Kotak Mahindra’s deal with Standard Chartered to secure its personal loan book worth Rs 4,100 Crore on November 26. According to this proposal, Kotak Mahindra’s India branch will acquire Standard Chartered’s personal loans portfolio.
Kotak Mahindra is registered with the RBI (Reserve Bank of India) as a banking company and offers several banking services, such as wholesale and retail banking and treasury operations. This deal is a strategic move from Kotak to bolster its presence in retail credit and drive customer-centric growth.
The deal approval increased Kotak Mahindra Bank’s shares by around Rs 1,798. Through this deal, Kotak Mahindra is acquiring loans, which are classified as standard assets.
Kotak Mahindra Bank shared that this transaction will be completed in three months after regulatory and other approvals and the waiver of customary closing conditions.
This acquisition is also the first major transaction of Kotak Mahindra under Ashok Vaswani’s leadership, who took over as Managing Director and CEO of the company on January 1. Previously, Kotak tried to acquire Citibank’s India consumer business under Uday Kotak’s leadership, but Axis Bank secured that deal.
Aditya Mandloi, the head of wealth and retail banking at Standard Chartered, said this deal will accelerate growth in the wealth affluent and SME (Small and Medium Enterprises) segments.
