MUMBAI: Marking its second major acquisition of a foreign entity after snapping up ING Vysya in November 2014 for Rs 15,000 crore, Kotak Mahindra Bank has agreed to acquire the personal portfolio of Standard Chartered Bank India. The British lender’s personal loan book is around Rs 4,100 crore as on date.
Kotak Bank, which was banned by the Reserve Bank in April this year from carrying out any online sales as well as new credit card customers citing poor IT system, in a statement Friday said the acquisition is aimed at expanding its retail lending business and the book is around Rs 4,100 crore now.
The joint statement, however, did not say what will be the deal value stating the total quantum of the loan book being taken over will be decided closer to the completion date.
It can be noted that foreign banks have been quitting retailing banking in the country. While HSBC, the oldest foreign lender in the country, was the first to do so in nine years ago, Citi followed suit in March 2023 by selling its entire retail banking portfolio to Axis Bank for Rs 11,603 crore.
However, HSBC re-entered the retail space again by launching the private banking space in July 2023, eight years after exiting the segment. Today its private banking business offers products and services such as investment products, mutual funds, bonds, portfolio management, insurance, and structured products.
The proposed deal with StanC will be of loans classified as standard loans and is expected to be completed over the next three months, subject to regulatory approvals, the statement said.
The bank will be acquiring the personal loan book that will be outstanding closer to the completion date of the deal.
It hopes to align the acquisition to its strategy to drive growth, expand market share and unlock opportunities in the salaried affluent segment.